I am Upping Gold and Silver Inventory Positions, Shorting Financials

The banking disaster has shifted the panorama for valuable metals, and it is not over but.

That is in keeping with John Feneck, portfolio supervisor and advisor at Feneck Consulting. Chatting with the Investing Information Community, he stated he is made changes to his portfolio since early March, when the collapses started.

“We upped our place in gold and silver shares closely after March 8, and we concurrently shorted financials,” Feneck defined within the interview. “We stay brief all these financials proper now, and that is labored out nice.”

Feneck was talking on Could 15, when gold was above US$2,000 per ounce, however he stated a pullback to US$1,900 would not be surprising and would in all probability be wholesome. Since then the yellow steel has dropped as little as US$1,955.

“I believe your main help ranges are that US$1,790 to US$1,800 vary … after which someplace within the excessive (US$1,800s) hopefully would maintain — possibly like US$1,850 even,” he stated, noting that the yellow steel continues to make a sequence of upper lows. “However look, even when issues go to US$1,850 I believe you are still going to hit US$2,100 right here inside six months or so.”

In the case of silver, the story is totally different. Feneck stated the white steel is dealing with pretty vital resistance at US$26.50 to US$28 per ounce, a stage that it not too long ago examined and once more didn’t push by way of.

“It is actually irritating for me and different buyers as a result of we need to see that stage damaged. I believe we’ll get that this yr, once more inside six months. However the massive spherical quantity to search for is US$30 — whenever you get to US$30 silver and also you break that with some authority, which means a few closes above US$30, it is go time in silver shares,” he stated.

“Buyers are going to want they have been positioned as a result of it should occur quicker than folks count on.”

Watch the interview above to listen to Feneck’s ideas on Guanajuato Silver (TSXV:GSVR,OTCQX:GSVRF), Ascendant Sources (TSX:ASND,OTCQB:ASDRF), Copper Lake Sources (TSXV:CPL,OTC Pink:WTCZF), Aftermath Silver (TSXV:AAG,OTCQX:AAGFF), Stillwater Essential Minerals (TSXV:PGE,OTCQB:PGEZF), Discussion board Vitality Metals (TSXV:FMC,OTCQB:FDCFF), Silver X Mining (TSXV:AGX,OTCQB:AGXPF) and Transition Metals (TSXV:XTM,OTC Pink:TNTMF).

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Securities Disclosure: I, Charlotte McLeod, maintain no direct funding curiosity in any firm talked about on this article.

Editorial Disclosure: Ascendant Sources and Discussion board Vitality Metals are purchasers of the Investing Information Community. This text just isn’t paid-for content material.

The Investing Information Community doesn’t assure the accuracy or thoroughness of the data reported within the interviews it conducts. The opinions expressed in these interviews don’t mirror the opinions of the Investing Information Community and don’t represent funding recommendation. All readers are inspired to carry out their very own due diligence.