Viscount Likes a Lot of Silver
Metals other than gold have finally gotten their wakeup call. Last week rhodium shot up to $7700 up from $575 three and a half years ago. Platinum broke $1000 to settle at $1027 and even silver was up.
South Africa has gone the Zimbabwe route. They are murdering white farmers and set the price of electricity below the cost of production. Much to their great surprise there isn’t much being produced. Since South Africa mines 78% of platinum and palladium along with the trace PGM, rhodium, metal prices look a lot higher in the future.
I’ve always been a fan of silver at the right price. With the ratio of gold to silver hovering above 86-1 silver is cheap relative to gold. So if you like gold because you see the Fed is doing their best to destroy the world’s financial system, you should be buying silver. Over the last one hundred years the silver gold ratio has averaged 53-1. Above that silver is cheap relative to gold, below that gold is cheap relative to silver. Remember, buy when things are cheap and sell when they are dear.
Viscount Mining likes silver a lot. That’s probably because they have a lot of it. The company owns 100% of the Silver Cliff project located in Colorado. When Tenneco was an oil and gas company prior to their sale in 1988, they spent millions drilling and doing a pre-feasibility study to put Silver Cliff into production. Their work showed fifty million ounces of silver at Silver Cliff. Of course that resource was prior to 43-101 so doesn’t come with the money back guarantee that all 43-101 resources come with. It is now termed a “historic” resource. I don’t have any particular problem with it. Tenneco wasn’t going to go into production on a whim.
Silver Cliff does have an official 43-101 presumably coming with that standard double your money back guarantee. The resource came out in April of 2018 and showed 5.6 million ounces at 84 g/t silver in the indicated category and 7.1 million ounces at 70 g/t silver in the inferred category. The other 38 million ounces of silver that Tenneco found are probably still sitting right where they were in the 1980s waiting to be mined.
On the property there are a number of old mines dating back as far as 1878 when mining started until as late as 1894 when the price of silver wouldn’t carry the cost of production. At the very worst, Silver Creek provides Viscount Mining and potential investors a cheap long-term call on the price of silver.
But Viscount is not a one trick pony. In their stable of horses, they also have the Cherry Creek property located in Nevada just north of Ely in Eastern Nevada. Cherry Creek consists of over 400 patented and unpatented claims along with mill rights.
Some of the earliest mining in Nevada came from some of the 20 past producing mines now belonging to Viscount. In as early as 1861 a gold silver vein was discovered just south of the Cherry Creek property with mining starting in 1863. Silver was the primary economic value but there was some gold and even tungsten.
Viscount believes there is some central source to the mineralization to all the different mines. This is the first time in 150 years that all the properties and former mines have been assembled in one company.
Like most juniors, Viscount is trying to hang on with their teeth until market conditions improve. The Fed has so totally distorted the financial system that FOMO is the primary reason for investors to toss their money onto the table and pick up the dice. It seems that the dumber the investment the more attractive it is to the punting public.
I managed to call the top of Bitcon correctly over two years ago. $600 billion, (with a capital B) disappeared off to Bitcon heaven. The FOMO fans still don’t understand that what they are holding in their hands smells like used dog poop because it is used dog poop. Even John McAfee now calls Bitcon “Ancient Technology.” I'm not really sure how much credibility to hand McAfee for his free advice. The last time anyone listened to him was when he was teaching Trump how to style his hair the McAfee way.
Then we had weed and obviously investors in weed were doing too much weed and got whacked once again. Now Apple and Tesla are popular. It would seem there is no shortage of investor stupidity. FOMO isn’t the best theory on investing, it is the worst.
Viscount needs to raise some money and get cranking but the market is being fickle. One day soon the tiny juniors will have their day and more money will come flowing into the resource sector. Meanwhile Silver Cliff puts a sort of floor under the shares. In 2006 and beyond, juniors were getting $3 an ounce for silver. Right now Viscount is only getting $1 an ounce so there isn’t all that much downside. It is a cheap perpetual call on silver.
For those who have never participated in a metals bull market, they get really interesting. Tech stocks had their day; real estate had its day, weed and Tesla are testing investor stupidity and the general stock market has turned into a reverse IQ test for Mensa.
The door to the resource candy store is sort of tiny and when everyone wants in at the same time it’s going to get crowded. And it is on the cards, it will happen.
I bought shares in the open market, I'm going to sit on them patiently and wait. Viscount is an advertiser and I naturally am biased. Do your own due diligence.