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November 16, 2009 / Jeb

Silver Outperforming Gold, Profit on U.S. Gold’s (UXG) El Gallo Discovery

Silver has shown incredible relative strength.  Today it showed major support at the 50 day moving average.  In a hyperinflationary environment silver can go parabolic.

One of the best ways to capitalize on this is U.S. Gold which is exploring and expanding its El Gallo Discovery in Mexico.  They just started their seasonal drilling the last week of October at El Gallo.  This could be a major silver discovery and since the news of this discovery UXG has moved from .80 to $3.  I believe additional results which will expand mineralization and grades which will push this stock higher.  Although the technical charts shows volatility I believe that after UXG shows results it will push through the 3.50 area which is an area of previous congestion.

 

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6 Comments

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  1. Trond / Nov 20 2009 7:51 am

    I asked Uxg about drilling on deep targets in Nevada. In reply today from Stefan Spears he pointed out: ‘We indeed believe there is a great deal of potential at depth on our properties in Nevada. This year we have drilled a number of holes >1,000 ft, but as you pointed out, we have only had success closer to surface so far. We are working on more deep targets and will be testing them this winter’.

    But it would be natural to assume that they already have drilled the most promising (deep) targets first (without discovery) -or maybe not? What do you think?

    • Anticipate Opportunities / Nov 20 2009 9:54 am

      There is potential there but it requires patience as they have a huge land position. Great comment and thanks for the information.

  2. LOU / Nov 20 2009 8:09 am

    NGD JUST LOST THEIR MINE IN MEXICO-GOVT SEIZED IT ! WHAT DO WE DO NOW? OF COURSE SAME THING HAPPENED TO CRYSTALLEX SYMBOL KRY AND STILL SOME DAYS AFTERWARDS THE STOCK ACTUALLY JUMPED 70 % ! SO WHAT DO WE DO NOW ? BUY,SELL OR HOLD ?? anybody care to comment? with all the posters on this blog im surprised nobody mentioned it…..

    • Anticipate Opportunities / Nov 20 2009 9:51 am

      To sell when everyone else is a panic. Let us see how NGD reacts the next two days. Remember they have a portfolio of producing and development projects. Major selling yesterday could be a panic washout.

  3. LOU / Nov 20 2009 7:15 pm

    thanks for the reply!

  4. lou / Nov 29 2009 11:58 am

    could you please comment on how long we can expect this gold/metals correction to last and when you expect the correction to end and the upwards movement to begin again ? thank you

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