Despite a remarkable rally of over 700% in the last 13 months, Avino Gold & Silver Mines Ltd. (ASM) is now confronting the possibility of a short-term downturn. The author, who has been a long-time supporter of ASM, notes that silver appears to be overvalued as of early 2026, leading to an expectation of a correction in the precious metals market, which could see ASM's share price dip below $4.
Furthermore, concerns have arisen regarding the company's production growth, which has not kept pace with management's projections. This shortfall casts doubt on the sustainability of a $6-$7 share price, especially in an environment of potentially declining precious metal values. Consequently, the author has revised their rating for ASM to 'Hold' for the upcoming 12 months, though they maintain a conviction for long-term buying opportunities during periods of weakness.
While the immediate future for Avino Gold & Silver Mines Ltd. presents challenges, the underlying value and long-term potential of the company should not be overlooked. Market fluctuations are an inherent part of investing, and periods of correction can often pave the way for future growth. Investors who approach the market with a well-researched strategy and a focus on intrinsic value can transform temporary setbacks into advantageous opportunities, ultimately contributing to a resilient and prosperous financial journey.