Silver Stocks’ New Upleg

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Tweet on Twitter / Adam Hamilton / January 27, 2017    

The silver miners’ stocks have surged higher in this young new year, putting the Trumphoria general-stock rally to shame.  Following its fourth-quarter drubbing, this tiny contrarian sector is embarking on a major new upleg as traders return.  Silver-stock uplegs tend to grow to massive proportions, and silver-mining fundamentals remain strong today.  So odds are the silver stocks are going to power far higher in 2017.

Because silver stocks aren’t widely followed, most investors and speculators are unaware of this sector’s stellar upside potential.  Silver mining is a challenging business both geologically and economically, so there aren’t many primary silver miners out there.  And their stocks’ collective market capitalization is small, a rounding error compared to the broader stock markets.  That doesn’t leave much room for funds to buy.

On top of that, silver itself is essentially a leveraged play on gold.  The overwhelmingly-dominant driver of silver prices is gold-price action.  Silver’s fortunes are inexorably slaved to gold’s own.  So the great majority of contrarian capital flowing into precious-metals stocks naturally seeks out the far-larger gold miners.  Silver stocks tend to fly under the radars of fund managers, creating exceptional

Read more ... source: The Bitcoin Channel




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