At the bottom of the precious metals downtrend, in late 2015 early December 2016 (Fig. 2), The Silver 7 Index was just below 200. Subsequently silver traded up to US$ 20 per ounce by summer 2016 from US$ 15 (+ 33%), but the Silver 7 Index reached a top in summer 2016 of 925 (+360%).
Silver stocks - Terrible downtrend but maybe now it's time to have a serious look at them
Attachment 1 shows a medium-term chart of the Silver 7 Index. It is an index of so called silver stocks although most of the companies in the index have the majority of revenues from gold.
In alphabetical order these stocks are: First Majestic Silver, Coeur Mining (formerly Coeur d'Alene), Hecla Mining, PanAmerican Silver, PeƱoles, SSR Mining (formerly Silver Standard) and Wheaton Precious Metals (formerly Silver Wheaton). What is true is that all these companies are producing a substantial amount of silver.
Silver stocks historically have always been more volatile than gold stocks, as silver, as a commodity, is much more volatile than gold in the markets.
At the bottom of the precious metals downtrend, in late 2015 early December 2016 (attachment 2), silver traded around US$ 15 per ounce. The Silver 7 Index was just below 200. Subsequently silver traded up to US$ 20 per ounce by summer 2016 (+ 33%) and the Silver 7 Index reached a top in summer 2016 of 925 (+360%).
One doesn't need to be a mathematician to figure out what investors have to own when the precious metal markets are turning up. Even if silver goes to US$ 50 per ounce as so many "bla, bla, bla writers" (read website talkers) are predicting, that is around 240%, silver stocks will outperform the physical silver by milestones.
BUY LOW - SELL HIGH. That is the way to make money. Silver stocks are cheap, out of fashion, and deeply oversold.
That is the time when the astute investor starts to build positions. It probably will take time until the big bull market gets going but the rewards will probably be extremely high.
We have chosen the Silver 7 Index because it is composed of the larger silver producers and an index, which gets regularly published, although it cannot be traded.. However, there are many more silver companies, and to be fair, we list some of them below:
Fresnillo
MAG Silver
Endeavour Silver
Fortuna Silver
Silvercorp
Avino Silver and Gold
SilverCrest Metals
Excellon Resources
Impact Silver
Silver One Resources
Great Panther Silver
Aurcana Corp.
Minco Silver
New Pacific Metals
