On June 12, 2019, the gold-silver ratio hit a 26-year high by breaking through the 90-ounce mark – meaning it took over 90 ounces of silver to purchase one ounce of gold. The higher the number, the more undervalued is silver or, to put it another way, the farther gold is pulling away from silver, valued in dollars per ounce. For the past several weeks the gold-silver ratio has stayed around 86-88:1. Since the coronavirus outbreak though, the gold-silver ratio has rocketed to a new record of 95:1. This is so far out of whack from the historical ratio of 54:1, that silver is on sale.

Market was a lot about margin calls. Gold-Silver Ratio EXPLODED. I have been adamant this week, silver is not acting like a precious metals, it is an industrial metal and it acted more like that this week. Silver is down over 10% this week. Silver has no trend, went from a high to a low within a broad band..

Silver finally showed some spark with a solid 4.5% gain this past week. With an RSI still under overbought levels at 70 silver could have further to run. Our only concern, as we note below, is that while gold is making new 52-week highs silver is not. Silver is still suggesting that it could hit potential targets up to $20.30/$20.50 based on the triangle that formed August to December 2019. The flag formation that formed in January/February 2020 suggests targets of $19.40/$19.50. Once silver breaks over $18.60 we could also have potential targets up to $21.80. Some words of caution are that besides silver lagging gold the commercial COT for silver is sliding further as well. Nonetheless, the action was positive this past week for silver and we should see higher prices this coming week. There is some resistance at $18.90 and again up to the August 2019 high of $19.75.

Alexco: is in the process of divesting its profitable and fast-growing remediation business (AEG) to the AEG management group. On closing of the transaction AEG will be pay Alexco $12.1m in cash, with the balance of $1.25m payable pursuant to a promissory note maturing on February 14th, 2021. This will go a long way to reducing the required capital investment to bring several Keno Hill mines back into production, feeding a central mill. Construction will start in 2020 and the because the company has already built the mill and started mine development, the buildout period is estimated at 8 or so months... Companies covered in this weekly report: $AXU $USAS $KOR.to $AG $FSM $KNT.v $GSV $KL $OR $SILV $PAAS $TXG.to $WGO.v