So I've been blathering on about gold and silver since the beginning of this year. So I am in $Pan American Silver(PAAS)$ which is a silver mining company, it mines silver and gold and pays a dividend. Last year I also brought $Santana Minerals Ltd(SMI.AU)$ and $SILVER MINES LTD(SVL.AU)$ these are both pre mining companies. The former is a gold miner in New Zealand, the latter is silver miner in Australia. Both are yet to obtain the permits to mine, but are well down the track. Plus both Countries are very stable. Not sure I'd buy a mining company based in Mexico atm by comparison. Ok so all their proven gold and silver reserves are still underground but i.d.c. They are Future gold and silver banks.
Also getting into $Hycroft Mining Holding Corporation(HYMC)$ again proven gold and silver reserves and their mines are in Nevada, USA. And finally $Sprott Physical Silver Trust(PSLV)$ with vaults of physical silver.
I'm not buying physical gold or silver. It's way easier to buy the stocks that mine it or physically hold it. And I would not touch paper silver. In my opinion the COMEX is a dead exchange walking. They have manipulated the gold and silver markets for decades, and in the last few months their blatant manipulation deserves criminal charges. I would not be at all surprised if they die, good riddance!
For related reasons, I have also sold out of all my banking stocks. They "allegedly" are playing with COMEX and screwing retail for profit. But there is a more complicated reason I'm out of the big banks, 3rd teir lending. Think the last banking crisis x2. A story for another day.
But let's talk catalysts. Why am i swooping up gold and silver miners. Gold is going to US$6,000 an ounce this year easy. And silver should already be at US$300 an ounce RIGHT NOW. Oh emotional investor... you are getting too emotional I here you say. Nope. Let's explore reality.
Catalyst 1
USA starting a war with Iran, Iran bombing all their neighbors, not to mention Russian SMO on Ukraine. Massive geopolitical uncertainty. The whole world is going nuts. When things are nuts, squirrels horde gold and silver nuts.
Catalyst 2
US$ debasement. The dollar is subject to inflationary pressures. A dollar today at 3% inflation is worth $0.97 cents a year from now. Then there is money printing. Record levels of money printing, way more debasement. A US$ is a piece of paper at the end of the day, is actually worthless. A paper promise backed by a government promise of... well, hmmm, future prosperity maybe at best. But American government debt, and interest repayments that will soon go from the second largest budget item to the first. It doesn't look promising.
Gold my tiger friends is not subject to inflation. Neither is silver Btw. But gold has been the currency standard for thousands of years. Silver too a smaller extent. But silver is very different. It gets used. Gold sits in vaults. Silver is mined, and for the last 5 years, silver stockpiles have been steadily declining because we use Way more each year than we mine. Solar panels, EVs, medical equipment, data centers, medical equipment. Crap even your household microwave needs silver.
Catalyst 3
China. They have significantly restricted supply of gold and silver and are buying physical gold and silver at a massive premium to the COMEX paper prices. Paper is meaningless, but as I speak Shanghai paper is trading at an 11% premium to COMEX paper silver prices. The COMEX is dead. Don't trust spot silver price, its a LIE. Meaningless.
Catalyst 4
India has just announced that all of their mutual funds from April 1 this year can now have up to 35% in physical gold and silver. Prior to this announcement it was 0%. And they will not price set on the COMEX or the London exchange. They are setting up their own exchange. So the old guard is screwed.
That's my investment thesis, a lot of complexity here that's not explained nor easy to understand if new to gold or silver. But I will just conclude with look at the companies I mentioned, consider the catalysts, understand that they were very cheap and now not so much. I think gold miners will 3x this year, silver miners will 10x. But mining stocks are cyclical, what goes up will come down. Also, gold has way less upside Compared to silver. Time will tell. As always happy trading my tiger friends, Ei out
@MillionaireTiger @Tiger cub @TigerWire @Tiger_SG @welL Eyes @SPACE ROCKET @MojoStellar
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