The Update 2 To The Top Five Portfolio Dispatched

Please, check your e-mail boxes to find the Update 2 to the 2017 Top Five Portfolio.

If any of my subscribers did not receive it - please, let me know. Bad things happen (then I will send it again).

A Message To The 2017 Top Five Portfolio Subscribers

On Wednesday (May 24, 2017) I will be dispatching the second update to the 2017 Top Five Portfolio report.

Silver Still Rapidly Hoarded

Despite weak silver prices, this month  the metal is aggressively accumulated by SLV:

source: Simple Digressions

As the chart shows, during the first two weeks of May as many as 12.1 million ounces of silver have been added to SLV vaults. It is a vast amount. For example, in 2016 the largest world's primary silver producer, Fresnillo plc, delivered 45.7 million ounces of silver.

In theory, at the current rate of 24.2 million ounces per month, SLV would have accumulated 290 million ounces of silver within one year (six times more than Fresnillo's annual production).

The question is: will that heavy accumulation have a positive impact on silver prices?

The Precious Metals Market Looks Better Now (At Last)

The precious metals market is probably bottoming. Generally, the best entry points are when this catastrophic correlation between gold and the precious metals stock market (represented by GDX, for instance) stops working*.

* - I mean a pattern where gold goes, say, 1% down with GDX dropping 3%. And then again and again and again...

Look at these two charts below (the upper panel shows GDX and the lower one gold) in an ultra-short perspective:

                                                         

source: stooq.pl

It looks like the market is sending a positive signal for gold bulls (at last). Since May 4 gold prices have been going down but GDX has chosen the opposite direction (look at two red arrows). In the past such divergencies were very promising...

B2 Gold And OceanaGold - Time To Relax

B2 Gold and OceanaGold may relax. Their big enemy, Gina Lopez, has lost her job as an environment secretary in the Philippines.

Well, apart from closing a number of mines, most recently Mrs. Lopez banned the open pit mining in Philippines. It means that a mining company trying to start a new open pit mine in that country is not allowed to do it. Or, better said, it was not allowed a few days ago (as Mrs. Lopez held her post).

The country is open for mining once again.

Mineral Drilling Sector - What A Day!

My DRILL index went up 7.8% today. Let me list today's winners:

• Energold: up 10.3%
• Major Drilling: up 3.7%
• Geodrill: up 3.8%
• Orbit Garant: up 6.3%
• Capital Drilling: up 18.5%

Now look at the DRILL index:

source: Simple Digressions

Well, while big gold miners did nothing today, the DRILL index rocketed up. Now I am waiting for the traditional mining sector to follow its drilling fellows...

A Rapid Increase In Silver Held By SLV

iShares Silver Trust (SLV) is following JP Morgan now. Since April 25 as many as 9.6 million ounces of silver have been added to SLV vaults. It is a large figure - look at last changes in SLV holdings:

• April 1 - April 25: a decrease of 5.0 million ounces
• April 25: 2.0 million ounces added
• April 26: 2.9 million ounces added
• May 1: 1.1 million ounces added
• May 2: 3.5 million ounces added

So between April 1 and April 25 SLV reported an outflow of 5.0 million ounces of silver but in just four trading days (since April 25) as many as 9.6 million ounces were added.

Interestingly, most recently silver prices go down nearly every day but SLV and JP Morgan are hoarding silver bullion...

Another thing, in January, February and March SLV was reporting outflows of silver. In April this trend was stopped and now SLV reports a rapid increase in its silver holdings: 

source: Simple Digressions