Why silver mining stocks haven't benefitted from recent surge in POS

Discussion in 'Stocks & Derivatives' started by rbaggio, May 3, 2011.

  1. rbaggio

    rbaggio Active Member Silver Stacker

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    It is specifically to do with silver being a supressed market, in an inflationary environment (in that country).

    Not sure I agree with it, but he does explain it well.

    Fast forward to 8:42

    [youtube]http://www.youtube.com/watch?v=xAc5f3mIa00[/youtube]
     
  2. SilverSanchez

    SilverSanchez Active Member

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    It is hard to take data and make a comprehensive conclusion, we all have our perspectives. He mentions some things that would imply bias towards a particular mistrust of stocks. But I apreciate the info even though he doesnt mention Asia at all, which is where I think the weakness started.
    One thing it did highlight for me is that the graph is showing both greed and fear but in different places. I suspect the Japanese crisis prompted a fear responce (moving out of stocks into metals) and then a greed responce causing it to become over bourght, which seems to have induced a sell off leading to a fear responce and a further sell off.
    Im still expecting silver to come down as low as $36 AUD (but wouldnt be surprised if it was exagerated to an over sold $32....
    My stock portfolio is going to look bad for a time i suspect, untill the PMs continue their march.

    What do you guys think?
     
  3. PerthStack

    PerthStack New Member

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    Agreed. It has been nice seeing green for months in the silver stocks but a couple of red days was expected. In 12 months we will be laughing.
     

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