Avino Silver & Gold Mines Soars Amid Ongoing Precious Metals Rally
The price of gold and silver has experienced a multi-year run, and despite a recent correction, some experts still see opportunities in the space. According to Joey Frenette at The Motley Fool Canada, 'the debasement trade and central bank buying activity across the world paint a longer-term picture for gold and silver.' This could mean amplified gains for miners due to their operational leverage. However, with many junior miners already experiencing significant appreciation, the question remains whether the gains can continue or if the latest downturn is a turning point.
Avino Silver & Gold Mines (TSX: ASM) has seen its stock nearly tenfold in recent years, but it has also experienced extreme volatility. Despite being off 41% from its highs, shares are still up by more than 1,000% from the 2023 and 2024 lows. Frenette suggests that betting against Avino may be a bad idea, especially given several big banks' calls for more upside in silver and gold.
While some experts see potential in mid-cap miners like Avino, others may view them as too risky due to their high volatility. If there's pain in the cards for precious metals and rate hikes are on the table, it may be too soon to buy Avino. However, those looking to invest could consider nibbling steadily over time to deal with the intense volatility.