There has been a lot of talk and chatter on the net the last few weeks in the silver camp about the price of silver being primed to take off. There has been some pretty interesting articles in the last little while that tell you the reasons why silver is heading higher. Of course there is also a bear camp that has all the stats that can show all the reasons why silver price won't go up any time soon also. But for conversations sake we will stick with the silver bull camp and look at the reasons why it is about to explode.
The first article I read was quite interesting as it explains that there is only a certain amount of value in the worlds economy and its all about how that value is invested. The author uses a method called fractals to measure and analyse everything using time and valuation. With this data the author goes onto say that the value of equities like big stocks have gotten to an over valued point. Realestate in most cases is over valued. Almost every tangible item of value is overvalued at the present time except oil, precious and base metals. Oil might be undervalued but as he explains there is just too many factors that could push oil down again. Factors like Iran or Saudia that could dump millions if not billions of barrels of oil out on whim driving the prices down just to elimenate competition.
With base metals there is also too much uncertainty in the world economy as far as expansion goes so things like copper or base metals are questionable. All this leads to the precious metals like gold and silver. The reasoning for silver is because it is the cheapest out there. Silver is like picking a penny stock. It's only human to pick through and look for the bargains. Our thinking tends to tell us that if we buy a 2 cent stock, we only need a 2 cent rise to 4 cents to double our money. So it is the same mentality that would say that silver being only $15-$16 per oz that it only needs to go to $30-$32 for me to double my money. Whereas with gold it would need to break a new high and need to get beyond $2,400 an oz for a double.
Another person Bo Polny who uses cycles and time to analyse trends and commodities is basically saying the same thing. His call is for triple digit silver this year in 2016. Of course we read lots of articles stating that certain banks have hoarded all the physical silver there is. This is the explaination that a lot of silver stackers use pointing to the fact that bothgovernment and private mints have run out of physical silver for minting but yet the paper silver price remains the same or even goes down. Of course the entire gold or silver market is the smallest markets on the planet money wise so it would not take much for any one nation or even a large corporation to actually take over the complete market if they could actually get their hands on all the material.
All the gold and silver that is traded, is just paper. There is something like 100 oz of paper silver or gold for every physical oz of metal so the day may come when some unlucky people find that silver they supposedly own is not worth the PAPER it is written on. Either way going by these writers this past week it should be an interesting time coming up if any of this stuff actually transpires. I've read lots of these theories over the years and I have developed an "I'll wait and see" attitude. But as a gold and silver bug I have always said that owning a bit of either is a great way to hold some money as a saving. And while I'm talking silver here, make sure you sign up for my newsletter. The form is on the top right hand side of this page and your email goes into the draw for a 1/4 oz silver coin.
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While a lot of eyes have been watching the gold price rise lately, it seems few people are watching some of the other metals. Base metals like zinc and copper have both been rising over the past few months but few have noticed the rise in palladium.
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An Early Investment Opportunity With A Small Float
The junior miners website has a directory of junior mining companies. After cleaning out the ones that no longer exist and adding in the new ones that have started up, I think there is about 2400 public junior companies out there listed on various exchanges. A lot of these newer juniors are formed to take advantage of the higher gold and silver prices we are seeing lately and are out on the hunt for ground to explore that has potential. Then there are companies that get started already owning properties that have good upside potential to take advantage of these higher metal prices.
While most of these newer start ups seem to gravitate towards places that are hot like Red Lake Ontario region or BC's Golden Triangle, there are those companies who look tend to look for potential in the more un-noticed and un-known areas. Clarity Gold CSE-CLAR is one of those newer small juniors doing just that in British Columbia.
The company just start trading in June of 2020 but already had a property owned 100% under it's belt. This property is the Empirical Property which is the company's flagship property ,is located within the Cordilleran Continental Arc of BC. This region contains multiple significant porphyry deposits, including Imperial Metals historic Huckleberry Mine and Norandas historic Babine Porphyry camp. The land package is quite large at 10,618 hecatares. The bonus is this property already has a completed 43-101 report. Previous work on the Empirical property has demonstrated good gold values. Some of the historical work includes approx. 1600m of drilling where 6 of 15 historic drill holes intersected anomalous gold values. These values include one interval of 21m of 3.67 g/t Au. Other grade showings include: 1.75 m @ 3.20 g/t Au - 1.01 m @ 3.30 g/t Au and 0.88 m @ 10.27 g/t Au Originally this property was explored for it's moly potential and not much interest was put towards the gold values. However with gold prices setting all time records, this property offers a whole new exploration potential.
The property is located just a few kilometers from Lillooet, BC so infastructure is close at hand which helps keep exploration costs to a minimum. The company just sent in a small exploration crew in late July 2020. The crew will attempt to locate and verify these historic mineral showings and assess the suitability of the exploration program. The company will also be conducting a grab samples on targeted zones to locate additional areas of interest outside of the original Empirical project claim group.
Aside from the Empirical Property, the company also has a gold, silver and copper property on Vancouver Island. This property known as the Tyber porperty. This property has seen historic workings that deserve a second look today. There are two historic adits (14m and 47m in length) that are believed to have targeted mineralised quartz veins within local shear zones. A historic grab sample from the area showed Up to 2.328 oz/t Au (from waste dump), 16% Cu,and 305.5 oz/t Ag.
Clarity also has a third property which is also located in Vancouver Island not far from Port Alberni. This property produced a grab sample that assayed 48.00 grams per tonne gold, 51.43 grams per tonne silver and 17.8 per cent copper.
At the time of this writing, Clarity Gold has 20,358,000 share out standing with 22,237,310 fully diluted.
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