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Chart 1: Silver Sentiment
We plot Silver along with 3 sentiment indicators: its net speculative position, the daily sentiment index and the SLV put-call ratio. This gives us a broad and excellent look at sentiment.
Given our view that Gold is going to make a major breakout this year, that leads us to be extremely bullish on Silver. Weeks ago we touched on Silver specifically and why it has a chance to rebound to $26-$27 in the next 12-18 months. Although Silver has yet to breakout, we remain quite constructive. One reason is the sentiment indicators are very encouraging. While Gold's net spec position is 38% of open interest Silver's is only 11%! Also, the current DSI for Silver is 55%
bulls.
It should be noted that during major breakouts in any bull market sentiment tends to be elevated and it remains elevated. But the sentiment indicators for Silver tell us that it could run quite a bit, if a breakout were to happen fairly soon.
Late Saturday evening, we published TDG #557, a 25-page update which covered our thoughts on the outlook for the sector, a lengthy Q&A section (in which we answer numerous subscriber questions) and an updated report on one of our favorite companies.
We think this company could be a 4-5 bagger in the next 18-24 months. It is volatile and should be bought on weakness.
On our model portfolio page we also mentioned a different company which is setting up for a big move if Silver makes its run. (Of course many silver stocks are but the key is to find the ones that can move the most).
I actually hope Gold does not breakout right now because I want the sector to continue to consolidate so we can continue to accumulate juniors at reasonable prices. If Gold does not breakout then we should continue to see some excellent values in the junior sector. Subscribe to our service and find out which juniors are great values and have massive potential over the next 12-18 months.
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You nearly always read the trends and support and resistance extremely well. Please keep us posted if or when the outlook seems to change. which you always do of course. TDG is the most valuable resource for understanding what is possible to understand about the PMs.
I appreciate your service and have some concept of the work that goes into it. Your stock picking is excellent.
Thanks for being a good stock picker and an excellent chartist.
I have been a subscriber since late last year and just wanted to say thanks. You are the best analyst for gold stocks that I have found. (And I have been around for quite a while : ) )
"I am simply a pure market-timer for a broad basket of gold stocks and precious metals. Jordan, on the other hand, has provided superior STOCK-PICKING abilities over the longer-term. I am familiar with most gold stock subscription services over the past 30 years. I rarely provide endorsements of any kind, but Jordan's ability to analyze individual gold/silver stocks has been among the top 5 services over the past decade. First and foremost, I respect his integrity. - Dr.
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Thanks for reading. I wish you all great health and prosperity in 2018!
-Jordan
Disclaimer: This newsletter is intended for informational and educational purposes only and should not be considered personalized and individualized investment advice. Investment in the precious metals sector contains significant risks. You should consult with an investment advisor and do your own due diligence before making any investment decisions. This email may contain certain forward looking statements which are subject to risks, uncertainties and a multitude of factors that
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