27. November 2020 | 09:19 CET
BYD, Canadian Solar, Silver Viper - don't miss the start!
The optimism for life in normality is growing more and more with the successful test results concerning the vaccines against the coronavirus. The administration of a vaccine, which is to be available to the general public from spring 2021 onwards, should make it possible to relax increasingly in everyday life. If one reads the daily news, the pandemic seems to be contained and thus controllable within a few months. The "victims" of this development are the crisis currencies gold and silver. After their highs, both precious metals and mining stocks are initially taking a breather - but a comeback is very likely.
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ISIN: CA8283341029 , CNE100000296 , CA1366351098
Further correction likely
How quickly a correction can be completed has been seen in the oil price in recent weeks. Since the March low at USD 18.00, the black gold has posted a performance of over 150%. We see something similar on the gold chart. The long term upward chart is still intact. Since its high in early August at USD 2,069.70, the precious yellow metal has begun a correction below the USD 1,900.00 mark which was initially regained.
Afterwards, however, the price fell below the significant mark, also due to the positive vaccine announcement. Currently, a battle with the support at USD 1,795.00 is taking place. If this falls, we expect a rapid descent to the critical support level of USD 1,747.00. This significant level should represent the target range. From there, the next move north should start with new highs in 2021.
Mining stocks become attractive again
At the same time, mining stocks are correcting. Considering that the big picture in the gold market continues to be positive, exciting stocks should be added to the watchlist right now. One value that stands out is the Canadian junior exploration Company Silver Viper Minerals Corp. The Campany's value corrected from its August highs of CAD 0.85 over 50% to now CAD 0.41 in the course of the gold downturn. Fundamentally, the Company is in a strong position. In September, a financing round was successfully completed, which raised a total of CAD 2.8 million for Silver Viper.
The descendants of Pan American Silver
The Canadians search for precious metals in Sonora, Mexico. The Company currently operates its La Virginia gold-silver project, formerly owned by Pan American Silver Corp. Drilling at La Virginia has identified a gold-silver vein up to 20 metres in diameter. The experienced management, also due to the financial resources now available, intends to test other drill-ready anomalies that Silver Viper has identified at the surface during the sampling program in addition to the existing projects. In a press release, CEO Steve Cope also anticipates further momentum that could further enhance the value of the Company later this year.
Other successful divisions
BYD is hungry. The Chinese Company, which has made a name for itself primarily as an electric car manufacturer, is also pushing the expansion of other promising lines of business. Less well known is that BYD has been active in the North American energy storage market since 2011. The Tesla competitor is now reporting great successes in energy storage in the USA. A promising partnership has been agreed with Canadian Solar. BYD will provide its advanced battery technology for the 100 MWAC Mustang solar power plant in Kings County, California and will supply a 75 MW energy storage system as a retrofit to the plant.
The system was developed by Canadian Solar, which has been connected to the power grid since 2016. With the newly developed storage system, the solar energy generated during the day can be stored for use in the evening. The "Build your dream" Company was euphoric about the project: "We are pleased to be able to supply this large-scale solar and energy storage project, which is being fully developed by Canadian Solar and integrated into our proprietary battery technology."