The banking crisis has turned the precious metals landscape upside down, but it’s not over yet.
John Fennec, portfolio manager and consultant at Fennec Consulting. He told Investing News Network that he has been adjusting his portfolio since early March when the crash began.
“Since March 8, we have significantly increased our positions in gold and silver stocks, while also shorting financial instruments,” Fennec explained in an interview. “At the moment we are still financially short, but it worked.”
Speaking on May 15, Mr. Fennec said the gold price was above $2,000 an ounce at the time, but the drop to $1,900 was not unexpected and was probably healthy. Since then, yellow metal has fallen to $1,955.
“I think your main support levels are in the $1,790 to $1,800 range…and hopefully stay somewhere in the high[$1,800s]range. Probably around $1,850,” he said. said, making a series of highs and lows that pointed out that the yellow metal continues to rise. “But even if the situation puts him up to $1,850, here’s where he thinks he’ll hit $2,100 in six months.”
Silver is a different story. Fennec said white metals face sizeable resistance at $26.50 to $28 an ounce, a level recently tested and again failed to break through.
“It’s really frustrating for me and other investors because they wanted this level to be broken. “If silver goes up to $30 and breaks it with some authority, meaning it closes a few dollars above $30, it’s doomsday for silver stocks,” he said.
“Investors will hope they get the position because it will happen sooner than people expect.”
Guanajuato Silver (TSXV:GSVR, OTCQX:GSVRF), Ascendant Resources (TSX:ASND, OTCQB:ASDRF), Copper Lake Resources (TSXV:CPL, OTC Pink:WTCZF), Aftermath Silver (TSXV:AAG, OTCQX:AAGFF) , Stillwater Critical Minerals (TSXV:PGE, OTCQB:PGEZF), Forum Energy 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, have no direct investment rights in any company mentioned in this article.
Editorial Disclosure: Ascendant Resources and Forum Energy Metals are clients of Investing News Network. This article is not paid content.
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