Timely Guidance for Silver Investors
I began writing this piece even before this morning's intraday reversal. It will be interesting to see whether COMEX traders can foment a follow-up push towards that $50 mark in the near-term, or whether traders turned shy as they approached and concluded that they'd come too far too fast to present a viable threat to the incredible seeling pressure that, in all likelihood, looms at $50. If they do bust straight through without a prolonged fight at $50, then you can chalk it up to commercial signal failure of an intractable sort.
Here are my further thoughts on where we stand:
Nothing about these recent dislocations alters my long-term strategy for investing in silver. To the contrary, seeing so many silver mining equities priced -- in my view -- as though silver were trading near $30, I perceive a particularly favorable risk-to-reward profile among well-selected shares at present. Silver Wheaton, Hecla Mining, and Silvercorp Metals (NYSE: SVM ) strike me as compelling valuations here; while carefully vetted junior explorers and producers warrant the attention of those seeking higher-octane returns. Whether silver busts through $50 with ease, or -- perhaps more likely -- retraces several paces after glimpsing that bastion of technical and psychological resistance, my bullish long-term outlook for silver prices and mining equities is unfazed by either outcome.