There is value to be had in the silver juniors
Below is a chart of our Junior Silver Index, which contains 10 stocks. Today, Silver (SLV) closed above $22, slightly above its 2008 high. The cost of Oil is well below where it was when the silver stocks last peaked. Yet, the junior silver stocks are roughly 25% below their highs. In terms of real value, in a fair world, the junior index would be trading ABOVE its 2007-2008 highs.
Let’s take this a step deeper by looking at the factors that are important for Silver stocks. Since Silver companies are Canadian companies, we look at the Canadian price of Silver. Oil is a cost in mining so we look at the Silver/Oil ratio. Base Metals tend to makeup a fraction of the output of Silver companies, so we look at the price of base metals. (more)
Below is a chart of our Junior Silver Index, which contains 10 stocks. Today, Silver (SLV) closed above $22, slightly above its 2008 high. The cost of Oil is well below where it was when the silver stocks last peaked. Yet, the junior silver stocks are roughly 25% below their highs. In terms of real value, in a fair world, the junior index would be trading ABOVE its 2007-2008 highs.
Let’s take this a step deeper by looking at the factors that are important for Silver stocks. Since Silver companies are Canadian companies, we look at the Canadian price of Silver. Oil is a cost in mining so we look at the Silver/Oil ratio. Base Metals tend to makeup a fraction of the output of Silver companies, so we look at the price of base metals. (more)
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