I constantly advocate acquiring assets at bargain prices and selling them when they're overvalued. Since 2015, silver has been the most undervalued relative to gold, platinum, and palladium. Therefore, if you anticipate a rise in gold prices, you ought to invest in silver.
Occasionally, I revisit my previous articles. My most recent piece on Dolly Varden Silver Corp. (DV:TSX.V; DVS:NYSEA; DVQ:FSE) was published in March, just before silver and Dolly's prices skyrocketed. Dolly hit its lowest point in April at CA$3.21, a month after I predicted a correction followed by a meteoric rise alongside silver, reaching CA$7.49 in October.
Here's what I wrote at the time:
"The metals will correct and then go higher. I think many of the bubbles that have been floating around have found the pins they so desperately were seeking.
The really good news is that, in terms of relative value, gold and silver shares are the cheapest compared to the metals they have ever been. Slowly but surely, the former stock market investors and cryptocurrency investors are going to realize they have been left holding the bag once again. It's time to look around and see what is cheap.
Resource shares across the board are cheap. They will not remain cheap for long. They are the only game in town."
Since May, Dolly has been occupied with expanding their land holdings and acquiring three former producing mines in the Golden Triangle. Their total land position now exceeds 100,000 Ha south of Newmont's Bruce Jack Mine.
The acquisitions have added silver in the ground at CA$0.05 while boosting the share price by CA$2 per ounce. This year's drill program encompassed over 56,000 meters of drilling. Preliminary results reveal 1,422 g/t Ag over 21 meters, 3.3 g/t Au over 120 meters, 26 g/t Au over 14 meters, and 14.5 g/t Au over 21 meters.
Assays for an additional 80 holes are still outstanding. Results will continue to arrive for months. The company possesses 64 million ounces of silver at an average grade of around 300 g/t and approximately 1 million ounces of gold at 5+ g/t. Following a successful financing, the company now holds CA$64 million in cash. An updated 43-101 is planned for Q1, reflecting an extra 200,000 meters of fruitful drilling.
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Important Disclosures:
- Dolly Varden Silver Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$3,000 and US$6,000.
- As of the date of this article, officers, contractors, shareholders, and/or employees of Streetwise Reports LLC (including members of their household) own securities of Dolly Varden Silver Corp.
- Bob Moriarty: I, or members of my immediate household or family, own securities of: Dolly Varden Silver Corp. My company has a financial relationship with: Dolly Varden Silver Corp. My company has purchased stocks mentioned in this article for my management clients: None. I determined which companies would be included in this article based on my research and understanding of the sector.
- Statements and opinions expressed are the opinions of the author and not of Streetwise Reports, Street Smart, or their officers. The author is wholly responsible for the accuracy of the statements. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Any disclosures from the author can be found below. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
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