Guanajuato Silver Company Ltd V.GSVR

Must Read - Wisdom From Lex On CEO Boards

[ErinBrockovich]

@lexcon @Lt.VincentHanna Hi, I'm still holding my position here, I think GSVR is navigating thru the growing pains but I anticipate a 3Q production number that surprises to the upside compared to the 2Q which was barely increased over 1Q. I think Flip stated it well, there are as many competing perspectives on gold and silver to the upside as well as down. But one place I subscribe to and has been very accurate on measuring the data just had this to say...regarding POG. "look at the action over the past seven months. Unlike the prior two peaks that reached $2000+ and were repelled fairly quickly and deeply, this time gold is absorbing the selling from the ever-scared gold bugs and the perennial gold bears, and absorbing it well." Based on charts of gold monthly closes it looks like the POG is consolidating and coiling just under the 3 recent tops, readying itself for a breakout to the upside. Regarding silver. Even though it doesn't feel like it, silver has been trending above its 3 month moving average and they pointed out: "Silver is currently 41% above its low of last September while gold is 20.7% above its comparable low. Be aware of that." They look at the silver/gold spread (inverse of the GSR) and show a chart of the past three years where the spread was in a defined down channel, but had broken out of the channel last fall when silver took the lead, then pulled back to a retest of the top line of the channel and has slowly been stair stepping up since this past spring. "Once again, we argue that this is probably the most important chart of all. More important even than price and momentum of gold and silver. The spread relationship is historically a major signal indicator of price explosions in silver (relative to gold) and of the net trend upside in both becoming more dynamic, with of course silver in the lead during those periods. You can see that since the September low last year, the spread also turned up, favoring silver." Since its a proprietary service I don't want to post the charts or any more detailed analysis than these two snippets, but the data they measure clearly shows strength developing in the PM's with silver ready to take the lead---these are monthly bars on multiyear charts so patience is the key IMO.