Metals Monday: Silver's Surge is Just Beginning

Commodity Callout

The Fed cut interest rates and commodities responded. Silver, especially, broke out in a big way that could be a sign of things to come.

Metal Price Update

Gold — Fed action was good news for gold. It started the week around $4220 per ounce and moved up to just shy of $4400. It will get there, and beyond, in short order.

Silver — Silver was the breakout star. It started the week around $58.50 per ounce and got well above $64. It won’t be long before $70 silver is a reality, and maybe something even greater than that.

Copper — Copper’s movement was more measured, as it stayed around the upper $5.40-per-pound range. It has the fundamentals to move well beyond that, and will benefit from money flooding into the commodity bull market playing out in front of us.

Lithium Carbonate — It was a slow and steady climb for lithium last week, starting around $13,122 per metric ton and ending just shy of $14,000. While it didn’t make as much progress as many of the names in the commodity sector, it moved up all the same. It continues to be a strong addition to any portfolio that contains it.

Uranium — Uranium continued holding in the $77-per-pound range, though it slowly inched higher over the course of the week. The fact that it has held steady for this long is encouraging, and those who hold it will be rewarded in the long term. 

Company Callout

Sirios Resources (TSX-V: SOI)(OTCQB: SIREF) is a gold play backed by seasoned industry veterans with the experience and connections to grow the company’s 3-million-plus open-pittable gold ounces.

What makes this company one to watch is a recent definitive arrangement agreement that it signed with OVI Mining Corporation whereby Sirios will acquire all of OVI’s issued and outstanding common shares. This is the first step toward building a major new gold mining company.

Company leadership will be made up of executives from Osisko Development among other industry heavyweights, and its project is located in the prolific James Bay region of Quebec, Canada, near Dhilmar’s Éléonore Mine.

While the resource sits at 3 million ounces now, the potential is there for 5 million ounces. Uncovering that kind of resource will take the company well beyond its current market cap of C$50 million.

What’s coming from this company gives investors the chance to take advantage of the gold bull market unfolding right in front of us. If you want to learn more about the company, including recommending buy prices and details on the recent deal, you can find all of that in the pages of Junior Resource Monthly by clicking here.

Keep your eyes open,

Ryan Stancil

Ryan Stancil
Editor, Resource Stock Digest