Re: silver stocks etc
Hi Team, I would appreciate your opinion on investing in the junior silver stocks such as SVL, JBY, IVR rather than in a silver ETF
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Answer
Hi Sidney,
Junior silver stocks wouldn’t be our preference; we much prefer the Global X Silver Miners (ETF) discussed in Friday mornings report.
Some of the small caps that you have mentioned have enjoyed a few strong weeks as the speculators have jumped onto the precious metals band wagon. However, they largely don’t make money and when these weak longs/momentum traders look for the exits it could easily get ugly fast. A little bit of bad timing &/or luck and these stocks could end up losing money even if silver continues to advance hence, they’re not on the MM radar.
From a trading perspective we would consider starting to buy the next 10-20% pullback – be brave when others are fearful rather than chasing current euphoria!
