Pan American Silver Corp. (USA) (NASDAQ:PAAS)
CAPS Rating:
Engaged in the exploration for, and the acquisition, development and operation of, silver producing properties and assets.
Engaged in the exploration for, and the acquisition, development and operation of, silver producing properties and assets.
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Recs
Bolivia mine is fine. Union workers all SUPPORTED Pan American and its operations, so stock was already at a discount.CME Group's blatant market manipulation has created a window of opportunity for those that were late to this bull run. This isn't an asset bubble popping, this is a healthy correction. Silver will still likely hit $60 by the end of the year. Mainstream news is citing that George Soros and others have "sold their gold and silver." Truth is, they only sold their PAPER silver in anticipation of this steep market correction. My guess is that these investors are reinvesting all of those paper profits into PHYSICAL as well as the paper they recently sold.The entire silver market screams of manipulation. The CME group raised margin requirements in order to lower volatility...yeah right, and in doing so, created even more.As bad as this downward move has been, watch for a pretty steady rise back up once the dust settles.Everyone is saying that QE3 won't happen, but reality is, it has to. The labor market is already struggling despite QE2 still in effect. The stock market has shown recent weakness as well. As soon as QE2 and 2.5 expire, watch for non-PM/commodity related stocks to drop. The market as a whole may decline 10+ percent. This will be the excuse Bernanke needs to announce QE3 and keep interest rates low.Long AG, SLW, EXK, and PAAS.