The Mother of All Short Squeezes is Upon Us
Gold has surged above its long-term resistance line of $1,310 this past week and is now 2.1% away from surpassing the 2016 high of $1,352, which will signal to every trading desk on the planet that the bull market is back at full throttle.
It’s an opportunity to make incredible returns as the U.S. dollar collapses.
The focus of all precious metal investors should be on the following chart because it clearly shows how the 80:1 ratio is the support for silver. When it reaches that extreme undervaluation, the months following it belong to silver, and it will absolutely perform!
Today, the ratio sits at 74.5:1, so we’re about to witness a surge in the price of silver.
Owning physical precious metals is an essential portion of the safe havens portfolio that all serious investors must build because of today’s tumultuous economic conditions.
Silver can gain 6%-10% in the coming months and close 2017 as high as $19.53 per ounce. It plays an important role in my personal asset allocation model as well.
The precious metals market is truly cyclical, and during the period between 2011-2016, the best strategy was to accumulate physical coins and bars while the price was smashed and manipulated downwards, because when buying insurance, cheaper is better.
But the massive gains will not occur by owning insurance – the serious money is with the mining shares, and during times where silver outperforms gold, the mining shares outperform both.
In the 1st half of 2016, we saw why the natural resource sector can change lives forever. Under-the-radar companies trading for cheap valuations soared, and the gains were ridiculously good.
What 2016 proved to Wealth Research Group is that in the silver sector, there’s no reason to look for tiny and risky plays in order to make extraordinary returns – the key is looking for the purest silver miner.
It will offer the most leverage and safety.
When it comes to investing with a genuine silver miner, First Majestic Silver (NYSE: AG & TSX: FR) is the only legitimate company that earns more than 60% of its revenue from mining silver.
The real reason why you want to take a close look at it right now is because it is cheap, they’re advancing a brand new mine (the 7th one), and our numbers suggest that the immediate and long-term potential are both enormous for First Majestic Silver (NYSE: AG & TSX: FR).
It’s so well-managed that even the central bank of Switzerland bought a massive position in 2016.
I’ve spoken to Founder and CEO Mr. Keith Neumeyer many times, both on the air and off the air, and I can tell you he is second to none.
Keith has made millions for shareholders of the two billion-dollar companies he has founded, and he will most likely have a 3rd billion-dollar company soon with his newest venture.
Therefore, when it comes to investing in this very risky industry, which is known to drop 50%-60% in months and gain 100%-500% in months as well, the main prerequisites for success are:
- Wait, wait, and wait for shares to be cheap: Keith Neumeyer’s company is incredibly undervalued – consider that it traded for over $20 just one year ago!
Then realize that there are very few companies that grow as quickly and healthily as First Majestic does.
- Stick with the best: Most mining companies are terrible speculations and never earn a single dollar. Keith Neumeyer has built 2 billion-dollar companies, is probably a few months away from having his Mineral Bank become another billion-dollar business, is a sizable investor in zinc companies, and is now invested in a blockchain company.
He’s worth tens of millions of dollars, but the main reason why he is my top go-to guy is that HE HAS NEVER SOLD A SINGLE SHARE!