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September 23, 2009 / Jeb

Best Silver Stock Pick UXG U.S. Gold, El Gallo is a Major Silver Discovery

Over the past few weeks since my last post on the current silver breakout, many subscribers asked me what is my favorite silver pick.  I mentioned that silver is undervalued to gold and has in the past outperformed gold when metals are breaking out to new highs.  Please see that post from 9/3/09.

Investors need to find opportunities where the charts are excellent and where a company is in the process of discovering a major mine.  U.S. Gold has made a huge silver discovery in Mexico and there is still a lot of opportunity over the next several months to hear more good news out of Mexico building upon previous news.   The drill results have been excellent and it is an open pit mine which will keep costs lower than competitors.  UXG is aggressively exploring this silver project and this stock can offer great leverage to the price of silver.

The chart is in a significant uptrend and is only beginning to make a major move.  This stock is giving clues of a major bottom with significant share appreciation for years to come.

uxg

I am buying shares every time it bumps the upward trendline as it has broken out of a long term ascending triangle.  The trend is strong and a move above 3.75 would clear the overhead supply from a couple of years ago and the price could significantly appreciate after that point.

Disclaimer:  I personally am a shareholder of UXG.

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