LBSV is a Silver company focused on exploring and mining mineral properties in North America. The company has been seeing steady interest over the last few weeks, and I believe LBSV is going to show strong and steady gains over the next week or so. I'm also expecting news shortly that could bring much more activity into LBSV's stock.
The chart is currently looking solid and we're right in the middle of a bit of a pull-back which is a perfect entry point.
While LBSV is still in the exploratory phase, the company recently acquired 1 million in funding, which isn't reflected on the most recent quarterly earnings report. Also, LBSV's major asset, the Trinity Silver Project is the primary interest investors have started taking positions in LBSV. More on the Trinity Silver Project in just a second, but first a quick background of why many analysts are predicting Silver as a better investment than Gold.
As you already know, precious metal stocks tend to perform very well in times of uncertainty and you can't get any more uncertain than the current state of the global market. The DOW is in the toilet right now, and when it is, you can usually bet on heavy investment dollars pouring into precious metals. I'm expecting this to be a trend over the next few weeks.
Silver is hot right now, and is vastly performing Gold. While it is a bit more speculative than an investment in Gold, most analysts are predicting that silver will outpace Gold over the next few years. Silver has already risen by 30% since February, versus only a 17% increase in the price of Gold.
LBSV's Trinity Silver Project: Why LBSV is Attracting the Interest of Major Investors:
Just last month LBSV signed a joint venture with AuEX Ventures in which LBSV can earn-in an undivided 70% interest in the Trinity Silver property . The Trinity mine produced roughly 5 million ounces of silver in just a 2-year period from 1987 - 1989.
The Trinity Silver Project, still contains an estimated 30 million ounces of silver with the current market value of $540 Million! (Roughly $18 an ounce currently.) With the turmoil in the European market not to mention our own, experts are bullish on heavy metals in general and extremely bullish on silver due to the fact that it has numerous industrial applications (not true of Gold.)
Many estimated are predicting that silver will most likely move to between $25 -30 an ounce in the next year making LBSV's assets worth an estimated $700 - $900 MILLION, or $7 to $9 dollars a share! Now we know why interest in LBSV is steadily gaining over the last few weeks!
This is big for LBSV because the current worldwide demand for silver is actually exceeds the annual production. Silver is quickly disappearing so to have a company like LBSV already sitting on 30 million ounces is HUGE for potential investors!
The U.S government, once the largest investor of silver on the planet has dumped billions and billions of ounces of silver onto the world market over the years, which has resulted in depressed silver prices.
Today that government silver stash is completely gone, and now the U.S. government is a heavy buyer of silver. Demand is higher than it's been in years, and is only expected to increase, while current availability is decreasing. It's simple supply and demand. Heavy demand + limited supply = Massive potential gains!
The interest in Silver is increase due to the fact that the current economic and monetary fundamentals in place right now, are even more bullish than the conditions of the 1970's when silver was over $50 an ounce!
The reason analysts are so bullish on silver (more so than even Gold) is because silver is widely used in industrial applications and electronic manufacturing, whereas Gold only offers itself as a hedge to counter rising inflation.
The currency crisis that is building is also a huge indicator that precious metals will be a strong investment over the years until the world economy stabilizes and offers better returns on investments than precious metals can offer.I'm also hearing rumors of news coming out over the next week regarding LBSV, which should bring more and more attention to the company over the coming days. Right now precious metals are surging, and the worse the DOW performs, the more investors will turn to gold and Silver over the next few months.
I released this mid-day so that we had a few hours to research LBSV and hopefully enter it at a good price before the momentum really starts to move.
Keep a close eye on it over the next week, as I believe LBSV will be a nice steady gainer for us in the short term.
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