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Is Silver About To Join The Commodity Super Cycle? What Impact Will Copper Have On Silver Prices?
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(US: SVTNF) and (TSX-V: SVTN)
According to Sprott Copper prices have also surged of late, but copper is not yet at the same multi-year high levels as other base/industrial metals, and it has certainly not yet seen the type of explosive move to new highs witnessed in some of the other commodities this year. It is, however, very close to making new all-time highs, BOTH the swap-dealing Banks AND the managed money hedge funds are net long COMEX copper contracts. The only side net short is the producer/hedgers. So if price suddenly spikes through $5.00, from where will the new contracts be issued to contain price? Maybe a few producers will hedge a bit more, but what incentive would The Banks or the funds have to step in the way and sell or short? None. Therefore, things could soon get disorderly in copper, and those $6 and $7 levels could come into focus quite quickly.
In short, if copper eventually follows the base metals and the energy sector to new all-time highs, it is highly likely that COMEX silver will tag along for the ride since it's considered a "base metal", too. COMEX silver may not immediately extend to its own new all-time highs, but if copper is seen trading with a $6 or $7 handle, silver's not going to be at $23.
The company owns 3 silver projects in Mexico, with Peñasco Quemado, being the flagship one!
If the drilling program, which is based upon already successful holes drilled in the past, hits a mother lode, this stock will absolutely ERUPT! It's just so cheap today!
Their second flagship asset, La Frazada, actually contains a number of minerals, not just silver, which makes it potentially even more exciting for a big company to purchase and take over --- this offers diversification into: copper, zinc, gold and lead. This type of deposit, called "Epithermal" is the HOLY GRAIL, when big discoveries are made on it.
The biggest point of value proposition is that Silverton Metals' three properties were all owned by another company in the past. In 2016, when silver's price WAS EXACTLY the same as it is today, that company had a CAD$100M, compared with only CAD$20M for Silverton today!
here lies the massive opportunity - same price of silver, same three assets: in 2016, these were worth CAD$100M, in 2021 {even after more drilling and advances} the value is only CAD$20M!
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