I looked at silvercrest metals about a year ago with quite a bit of disbelief and bias, similar to how many looked at bitcoin in 2016-2017. I'm not saying the results will be the same, but price action is playing out in a very similar manner.
If you look across the broader market of miners and precious metal prices in general, there are just about zero miners playing out in this fashion in terms of price.
Most will look at price in disbelief (like I did last year) and see an unsustainable bubble. But let's keep the fundamentals in mind...
AMEX:SILV has the following under it's belt:
- 6.03 quick ratio - $6 in cash for every $1 dollar of debt
- 0.0051 Debt to equity - They have acquired assets with almost zero debt
Are they profitable? No. Most miners are not pulling a profit. However, taking losses can be a tax strategy that corporations use during growth periods. So it's hard to say if their revenue minus expenses are healthy at the moment.
At the end of the day, price tells all. If we break out from here on good news, there's no overhead resistance, and a lot of room to move.
However, I do partially expect there to be a consolidation period here as the silver price cools off. We will see... Price tells all.
I will be keeping my eye on this one and update as time goes on. If you choose to trade, use stop losses. Miners are volatile.
There is still an opportunity for an entry here, but I don't find it highly desireable...
Enter at your own risk and use stops.