This week, gold ascended new highs. The record rally which saw gold blow past $US2,070/oz ($2,851/oz) also took silver with it.
Based on historical silver data, there has only ever been two occasions when the silver price has run hard — and both times followed recessions.
History also tells us that silver has the ability to outperform its precious metal rival once it gets going:
Silver has now reached $US29.37/oz, up 151 per cent from its mid-March low of $11.70/oz.
Gold is currently up ~40 per cent over the same period.
Are there stocks missing from our list? Email [email protected] >>>
So, where does gold (and silver) go from here?
“Given the continued tumble of the dollar and gold’s ascendancy to $2,070, I’m inclined to think that $2,150 would be an achievable near-term target,” says Barani Krishnan, senior commodities analyst at Investing.com.
“Even if the NFP [US non-farm payrolls] report for July surprises to the upside and triggers a correction in gold, the downward move would not be much given that another US COVID-19 stimulus bill is coming,” he says.
“The Fed has also signalled that it will keep rates ultra-low to support the economy, suggesting that any rebound on the Dollar Index will be limited.”
Winners & Losers
Here’s how ASX-listed gold stocks performed for the period August 03–07 [intraday]:
Scroll or swipe to reveal table. Click headings to sort. Best viewed on a laptop:
Weekly Small Cap Highlights
Drilling will restart at Equus Mining’s (ASX:EQE) high-grade, development-ready Cerro Bayo silver-gold project in southern Chile later this month.
Late last year, Equus signed a binding deal with TSX-listed miner Mandalay Resources to acquire the Cerro Bayo Mine district and infrastructure in Southern Chile.
This includes a processing plant which has produced about 600,000oz of gold and 45 million ounces of silver since 1995.
Alliance Resources (ASX:AGS) surged after hitting thick high grades at the 181,000oz Weedanna gold deposit in South Australia.
The 8m long intercept grading 21.1 grams per tonne (g/t) was located in a new, high-grade gold shoot “illustrating potential to grow the resource at depth”, the company says.
Formerly Brazil-focused explorer Meteoric Resources (ASX:MEI) is about to start drilling its newly acquired Palm Springs project in Halls Creek, WA.
Twenty Seven Co (ASX:TSC) almost doubled the size of its flagship Rover project to 461sqkm this week. The new ground includes three, largely unexplored historic gold targets.
The post Gold Digger: Gold’s little brother silver is officially along for the ride appeared first on Stockhead.
Barry Stroman was a reporter for Zerg Watch, before becoming the lead editor. Barry has previously worked for Wired, MacWorld, PCWorld, and VentureBeat covering countless stories concerning all things related to tech and science. Barry studied at NYU.