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.
Energy and Capital