Silver Stocks Look Undervalued
Time to Buy
The price of gold has pulled back in the past two day on profit taking following the ECB's announcement to decrease its interest rates to -0.4%. Since that time, gold prices are down about 2.0%.
Meanwhile, silver prices have held steady, tacking on a slight gain of 0.3% over the same time.
|click to enlarge||click to enlarge|
However, the drop in gold prices has caused all mining stocks to pullback – even companies that predominately produce silver.
As a result, I think silver stocks could be generally undervalued right now.
|Company||Symbol||Change Since Friday's
Peak in Gold Prices
|Pan American Silver||NASDAQ: PAAS||-4%|
|Silver Wheaton||NYSE: SLW||-3%|
|Hecla Mining||NYSE: HL||-4%|
|Tahoe Resources||NSYE: TAHO||-3%|
I recently posted an article here in Energy and Capital explaining why I really like silver in the near-term and I talk about Tahoe Resources (NYSEL TAHO) as one of my favorite silver stocks.
Check that article out here.
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