Many of my fellow silver investors are all worked up over the disappointing failure of silver mining equities to keep pace with the most recent and dramatic portion of silver's historic run.
After all, silver's incredible run has seen the iShares Silver Trust
Complicating the picture, some individual silver stocks have been impaired by their own unique sets of unfortunate developments. Pan American Silver
These have been dark days for Hecla Mining
Those special circumstances aside, a noteworthy fatigue in the momentum of silver stocks has indeed been palpable ... particularly over the past few weeks. Eager to make sense of the resulting disconnect, investors have offered a full spectrum of speculative attributions, few of which can be substantiated. Ultimately, the near-term trajectory of silver miners will be determined in the futures trading pits, where an epic battle has ensued since the silver manipulation bombshell first dropped last October. By late February, the unfolding of a powerful short squeeze was confirmed; and this major move set the stage for an imminent retest of silver's all-time nominal high of $50 per ounce. In fact, silver dared to peek its head above $49.60 in overnight action early Monday, and has retreated intraday to beneath $46.50 in one of the more volatile sessions in recent memory.
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