(Source: TradingView "1-month")
While it's common for gold to grab headlines in the past, in this new age of renewable energy technologies silver is the metal receiving a broad stroke of bullish outlooks from many leading analysts. These bullish projections for the white metal are based on a number of key indicators and trends that strengthen by the day.
Silver is currently trading right around $22.60 but consider these lofty outlooks:
- Bank of America Securities raised its 2021 real silver average price forecast from $21.95 to $30.49
- In a report published at the end of October, analysts at Metals Focus said they see silver prices going "well above" $30 per ounce
- In September, CIBC bank also predicted the metal to appreciate, estimating silver prices to reach $32 per ounce in 2021
- Analysts at Citi (C) are also optimistic about the metal's future. The bank's silver rate prediction is $40 per ounce over the next 12 months
- Citi also added that its foreign exchange technical team sees the potential for silver to reach $50 per ounce, or even surge higher – up to $100 per ounce – in 2021
The figure could go even higher, Keith Neumeyer, CEO of First Majestic Silver, believes silver could reach into the triple digits, saying US$130 silver is a possibility.
Important to note, there are some very real driving forces that could facilitate such a climb in silver prices.
- Central banks doubling balance sheets and fiscal deficits
- Governments increasing spending
- US currency being less strong than in previous years, silver has seen a steady incline, with the white metal gaining — and maintaining
- Geopolitical uncertainty
And then there's the growing "Green Initiative" which could drive silver demand even higher:
- Electric Vehicles (EVs) require a substantial amount of silver- the electric engine, battery pack, and battery management system all require silver
- The amount of silver used by the auto industry alone will reach an estimated 70 million ounces by 2030, up from 45 million ounces in 2017
EVs aren't the only boon for silver, solar applications are expected to create a significant demand for the metal as well:
- Goldman analyst Mikhail Sprogis also made the point that solar panels represent about 18% of silver's industrial consumption
- Goldman is predicting that between 2019 and 2023, global solar installations will have increased by 50% over the 2018 level
- The World Bank has previously forecast that solar will by 2050 consume half all silver produced
December 2020 Special New Mega-Profile Alert is:
Walcott Resources (CSE: WAL)
Website:
www.walcottresources.com
Quote:
https://thecse.com/en/listings/mining/walcott-resources-ltd
In their own words: "Walcott is a British Columbia-based company involved in the acquisition and exploration of mineral properties in Canada and Australia. The company holds an option to acquire a 100-per-cent undivided interest, subject to a 1.5-per-cent net smelter royalty, on all base, rare earth elements and precious metals in the Cobalt Hill copper-gold-cobalt property, consisting of eight mineral claims covering an area of approximately 1,727.43 hectares located in the Trail Creek mining division in the province of British Columbia, Canada."
"In addition, the company has acquired 60 per cent of two silver assets in Australia -- the Tyr silver project in northern New South Wales and the Century South silver-zinc project in northwest Queensland."
The significance of this last paragraph can't be overstated.
On November 12 WAL announced preliminary work by its Australian technical team has identified key elements at the Century South Silver Zinc Project (CSSZP) in north-west Queensland that the Company believes enhance exploration potential.
Noted in that press release, the CSSZP is approximately 8km along strike from New Century Resources' world class Century Mine 1 that recommenced mining operations in 2018.
"The two projects are on the same regional fault line which is known to control and constrain silver zinc mineralization in the district."
Additionally, "CSSZP is located in a well-established mining district with reliable infrastructure and access to nearby ports. In terms of power infrastructure; 90% the tenement lies within the 10km transmission network corridor as powerlines run through the centre of the EPM26713. The remaining 10% on the easternmost perimeter lies within the 30km transmission network corridor."
As part of the press release, CEO David Thornley-Hall remarked:
"We are excited by the strong fundamentals linked to our Century South Silver-Zinc Project, and we anticipate committing to a significant work program on this property. Accordingly, our Australian technical team have set an ambitious agenda to swiftly and effectively advance towards drillable targets within the tenure."
The Mt Isa Basin in north-west Queensland, where the CSSZP is located, is regarded as a world-renowned region of large-scale silver-zinc deposits. Some six major silver-zinc-lead operations and several world class copper deposits with established mining infrastructure are found in the region.
In addition to the CSSZP, WAL has announced plans to expedite their exploration program on their Tyr Silver Project located in northern New South Wales.
Overview of the Tyr Silver Project:
- Has two historic silver mines, Burra and Torny, with potential for high-grade silver zinc-lead-tin mineralization
- Covers an area of approximately 300 km2 in Northern New South Wales comprised of minimal use, hilly pastoral land, mostly cleared and lightly forested
- Tyr Silver Project delivers upside potential with mineral occurrences apparent along a northwest trend with numerous old workings both along this trend and possibly others
- Notably, the north-west trend is part of a large-scale mineralized system that includes the historic silver mines
What makes this silver and base metals project so promising is the results shown from WAL's assessment and interpretation of extensive historic data.
Thornley-Hall emphasized the potential in their November 3 press release, stating:
"The fact there are two historic silver mines and numerous reported mineral occurrences, potentially within a 20-kilometre-by-four-kilometre potentially mineralized system, suggests that a considerable future pipeline of work is warranted. Leveraging earlier work, we aim to rapidly deploy field teams to the Tyr silver project to commence reviewing preliminary targets and accelerate the formulation of our inaugural drilling campaign."
Why Now for WAL?
We had our eye on WAL several weeks ago when it was holding around the .80 level and we watched it climb as high as 1.17 but it has since pulled back and it once again landed on our radar after settling at 0.83 on Friday.
Today activity started to rise sharply and WAL closed Green at 0.84, despite the rest of the market seeing significant red.
Important to note, many of the most popular stock analysis sites had WAL as a "Strong" Green last week but the slide on Friday shifted the indicators quickly- we mention this because it shows how quickly these opinions can change and a slight bounce north could once again trigger favorable shorter term opinions.
We already began to see the chart improve this week as WAL climbed north today (Monday).
As we pointed out a moment ago, the 1-month indicators are already highly favorable:
TradingView: "Buy"
Investing.com: Strong Green
Again, both of the above Technical Analysis statements are reflective of 1-month (or Monthly) indicators.
The current low-0.80s level is where CSE:WAL showed to have support of nearly 3 months, prior to its breakout two weeks ago.
Another jump from this low-0.80s level could be a lot of fun to watch.
There appears to be considerable upside for WAL considering the bullish projections for silver; the demand for silver is expected to remain strong considering the explosive growth of electric vehicles as well as other renewable energy applications.
Right now might be the perfect time to take a closer look at WAL, we've seen it climb quickly in the past and it certainly has the potential to climb once more.
If we see WAL move back upward towards recent higher levels, it could be highly exciting to watch. Of course, the opposite could also be true; always be smart and protect yourself.
WAL closed at 0.84 on today.
Don't sit on your hands, this situation could be heating up.
We urge members to start researching CSE:WAL right away! This could be an exceptional situation developing as we speak.
For further information on CSE: WAL visit the company's website at www.walcottresources.com or a quote at https://thecse.com/en/listings/mining/walcott-resources-ltd.
As always, we encourage you to do further research.
Very Best Regards,
Editor, SCC
Sources Include:
https://www.benzinga.com/analyst-ratings/analyst-
color/20/08/16946380/gold-at-3k-50-silver-bofa-raises-metal-price-targets
https://www.rmegold.com/blog/bank-of-america-predicts-50-silver/
https://investingnews.com/daily/resource-investing/precious-metals-
investing/silver-investing/silver-in-the-future/
https://capital.com/silver-price-forecast-2021-and-beyond
https://smallcaps.com.au/silver-price-set-to-soar-citi-goldman-sachs/
https://webfiles.thecse.com/68531.pdf?
Zdff6xxuf87C.maHiA3ZmArV6nCRKw6f
https://webfiles.thecse.com/67997.pdf?
JqEekPmlmM6EqFTbYZqoyXGIsp1TB9EB
https://thecse.com/en/listings/mining/walcott-resources-ltd
https://webfiles.thecse.com/20201015_-_Walcott_-
_News_Release_announcing_Closing_.pdf?
2NtecijRa1WSqdtMVcai_guHSEIj9EpA
https://webfiles.thecse.com/20201105_-_October_2020_Monthly_Progress_Report.pdf?LWAkrWDTEFPxEmEfZu55rYb0lgLmitbf
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