Important developments will be taking place over the next 8 weeks which
could truly be dynamic.
The stock market is way overbought and real estate is super overvalued. I noticed Blackstone a
large private equity group is now taking public and looking to sell its
residential rental business which it acquired at pennies on the dollar off
of Joe the Plumber who got snickered into real estate investments when
mortgage companies were giving away money. Maybe Blackstone see's a top
forming? The same people who bought it off of Joe the Plumber are now
trying to sell it back at 100 times the valuations.
These markets are terribly corrupt and once in a long while the Banks
get a little slap on their wrist from the regulators and pay some small
fine. Deutsche Bank just paid a $60 million USD fine for fixing the gold
price.
Eventually there will be another short squeeze in precious metals. Gold
will soar but silver could make a dramatic move possibly even surpassing
2011 highs near $50 an ounce. I believe now is the time to own insurance
in the form of silver against a turning of the tide. Now the US dollar is strong but for how
much longer?
When Obama came into office, Bernanke promised they would do whatever they
needed to do to prevent another great depression. They threw money out of
helicopters for eight years.
Finishing eight years of a record market
pushed higher by quantitative easing and historically low interest rates
will be difficult for the masses. We are in a stage now that the negative
effects of the inflation have not yet occurred.
Could it be that Trump is
being the scapegoat that everyone will blame when stocks and housing start
tanking again?
I expect rates to begin to move higher and inflation to begin to rear its
ugly head in 2017. I can't believe the US dollar is this strong and will
hold up much longer with record low interest rates and so much quantitative
easing.
Silver is the place to be right now as it is cheap and I believe there are great
opportunities in this area if you stick to extremely high grade assets with
top notch management in stable jurisdictions. Look for management with
track records of negotiation buyouts.
For instance, back in 2013 Coeur
d'Alene, one of the largest US Silver producers bought Orko Silver for $350
million in cash and stock outbidding rival First Majestic Silver. The CEO
of Orko who negotiated that deal was Gary Cope.
You got to follow people in this mining industry like Gary Cope especially
if they were able to sell their company at a premium in a bear market.
Just crossing my desk this morning is news that Gary Cope has just come on
as CEO of Dolly Varden Silver (DV.V or DOLLF).
Dolly Varden has always had
a great high grade silver asset but it has had management issues for years.
This new CEO change with Gary Cope could be a huge catalyst for Dolly
Varden as the reason they may have hired him was for him to negotiate the
best deal possible with potential suitors. He knows how to negotiate with
the top silver players.
Also he comes along with an exceptional geological
team that could expand the project size and high grade. Large silver
producers are also looking to diversify into friendly jurisdictions like
Canada as well.
“We have put together an exceptional geological team with a diverse set of
skills and knowledge to support our exploration effort at Dolly Varden.
After validating the high grade silver rich nature of the Dolly Varden
property in the 2015 maiden NI 43-101 mineral resource estimate, we expect
that current estimated high-grade silver mineralization is further
expandable, and we believe there are similar deposits on the under-explored
remainder of the large project where the same lithologies, structure,
alteration and indicator elements have been defined in previous field
programs. The results achieved in 2016 on Ace-Galena are an example of the
growing opportunity at Dolly Varden,” said Gary Cope, President and CEO of
Dolly Varden.
Dolly Varden granted options at $.65 per share to Mr. Cope. Any price
below that I consider to be a bargain as you now have great management
combined with one of the highest grade silver resources in Canada. The
stock has been in a four month correction but made a bullish MACD crossover
in late November and could be on the verge of breaking a four month
downtrend resistance on this exciting news. More later on Dolly Varden
(DV.V or DOLLF)...
(Update: Since this has been written Dolly Varden has broken its downtrend channel.)
Disclosure: I own securities in Dolly Varden Silver and they are website
sponsor. I am considering purchasing more. This should be considered a
conflict of interest as I could benefit from price/volume increase and have
been compensated. This is not financial advice and contains forward looking
statements which may not come to fruition. Buyer Beware! See full disclaimer and current advertising rates by
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