The long-term silver cycle is now up and we think the 16.60s are an ideal point at which to initiate a long position or add to a preexisting one. In fact, we have received our first hard buy signal since May. Consequently, we have increased our exposure to silver by taking stakes in Aurcana and Fortuna, while doubling our stakes in Avino and Endeavour Silver. Meanwhile, the size of our First Majestic, Bear Creek, and Hecla positions remain unchanged.
Forecast
Silver is likely to open 2020 in price-neutral territory with a bullish bias. Silver should find substantial support at current levels and buying up to 17.97. A move through 17.97 opens the door to 19.41, 21.76, 23.10, and perhaps higher. A failure at current levels opens the door to 15.36, 13.91 and lower.
