$Silvercorp Metals Inc(SVM)$ Had wanted to share $ECHOIQ LTD(EIQ.AU)$ again, as it appears to be the gift 🎁 that keeps giving in this volatile time. However, the recovery of silver price along with Dow Jones seems to be catch of Thursday.
Silver, as we already know, had a horrible June. Sell in May and go away seems to be the most appropriate action in a World Cup year! I did sell some before silver's last peak, but had kept the main bulk.
Silvercorp, the miner i had shared previously in a separate article, had corrected a lot more than the drop in silver price in the past few days. As shared previously, Silvercorp has much outperforming $ProShares Ultra Silver(AGQ)$ for the main bulk of this correction period. What went wrong then? Why the sudden drop in performance and what does it mean for the miner?
China government has recently implemented a mandatory safety measure for its mining complexes operations. This mandated measure followed late-May fatal accident in a coal mine in Shanxi Province.
The company expects significant short term output falling 40-50% (July-September)! This has resulted in the recent big market's reaction.
I look at it differently. I have been in silver and Silvercorp long enough. This dip is simply a knee-jerk reaction. As long as the silver demand and price continue to hold up and recover, this dip could be an appropriate opportunity to accumulate 🤪 and this is what I have been looking to do. Indeed I bought some call options, and looking to enter a longer dated contract if silver price continues its recovery.
What were you doing in June's correction? Sold all and packed for the mountains, or busy buying all the AI related dips? Have your say...
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