Interesting Silver Surge Up this Weekend...Silver is surging but users on WallStreetBets say they're not behind the rally - CNN
New York (CNN Business)The silver market is the latest flashpoint in the Reddit mania that took over Wall Street last week.
Silver futures surged as much as 13% to Monday, touching eight-year highs. That follows a 6% rally last week when some posts on the WallStreetBets group on Reddit called for betting on silver as a way to hurt big banks they believe are artificially suppressing prices.
Meanwhile, retail sites warned customers over the weekend they could not meet skyrocketing demand for silver bars and coins. And "#silversqueeze" is trending on Twitter.
However, it's not clear who the Reddit users are — nor whether their market moves match the claims online.
Weekly Silver Chart below with Fibonacci Retracement from 29 April 2011 High of 49.83 to the 11 March 2020 Low of 11.64
We are now in a Major Wave 1, 2 and an impulsing 3rd Wave up with a likely Fib target of .786 at 41.65. Wave 1 = 18, Wave 2 Low = 22, 18+22 = 40.
Sprott Physical Silver was mentioned up thread could be an interesting entry point to catch the impulsing third wave up ...
On Oct. 27, Jim Rickards provided an extended 2020 election forecast, and we recommended shares of Fortuna Silver Mines (NYSE: FSM).
Fortuna is an established mining company with a silver mine in Mexico, a silver mine in Peru, and the newly producing Lindero gold mine in Argentina.
Our long-term price target for FSM is $20. It’s based on our expectations for silver prices, Fortuna’s historical leverage to silver prices, and the incremental value from Lindero’s gold production.
Fortuna reported outstanding third quarter financial results on Nov. 12. Free cash flow from ongoing operations tripled from the same quarter last year, to $30 million. Lindero will reach commercial production in the first quarter of 2021.
As this project transitions from a state of cash consumption to cash production, Fortuna’s corporate-level free cash flow will get another significant boost.
Fortuna Silver Mines (NYSE: FSM) is a buy up to $8.50 per share. FSM at $9.12 on 1Feb21