May 9, 2011

Posted by in Commodities | 0 Comments

Silver Stocks to Buy

This weeks stock market news catalyst:

Silver Stocks to BuyIt very well may be time for you to store some silver stocks to buy in your portfolio at these levels with the first strong sign of support is flashing here.

Is the correction over? Its too early to tell for sure if the bottom is in, but silver is currently making its first significant bounce since its free-fall began.

We don’t trust the cartel for a minute, expect them to continue to bring their big guns out of the bag to force silver under $30 over the near term although after last weeks 18% correction will make it quite difficult.

I would like to revisit and touch on a topic that many folks may not be aware of regarding Osama Bin Laden’s death. I will not however carry-on nor dissect what many of you may have heard all weekend long from the media. I’m referring to the photos/pictures or should I say the “lack-of-photos” providing further proof of his death.

I will say this…If there were 5,10, or 100 photos of him being shot in the head all across the media…The conspiracy theory folks out there would still cause a debate stating that it isn’t really him or the pictures were doctored and so on and so forth.

My rationale here is rather simple and straight to the point. This monumental historic event of Bin Ladens death was so great that it did something even such eminences as Ben Bernanke and Tim Geithner have been powerless to achieve — It miraculously revived the supine dollar, which has suffered weeks on end of dizzying vertigo.

The bounce in the buck was all the more impactful, coming as it did when the obsequies for the poor thing were being held in the somber portals of currency marts around the globe.

The unexpected rise of the greenback in response to the dispatch of the odious Bin Laden, helped set off a pinch of pandemonium throughout the commodities realm, reaching into the heretofore sacrosanct precincts of gold and silver.

Now those precious metals had been on a tear spurred in no small measure by gathering fears of inflation fed by the shrinking value of the dollar. In-turn, when the buck bucked up, such fears diminished enough to trigger a selling stampede. Plenty more stock market news revolving around silver stocks top buy with increasing volatility expected this week ahead.

55 on April 28th took an epic spill, featuring last week’s five day free-fall…The most miserable performance by the metal since the Bunker Hunt debacle in March of 1980. And it collapsed for much the same reason that bumbling Bunker came to grief: Willful or flat-out ignorance of one of the implacable truths that you forget or disregard at peril of getting skinned alive in commodities trading — something evil usually lurks right around the corner.

Below is a 9 month Silver chart showing the rise and fall of the precious metal coming into a major support zone which was built in early March.

Silver Stock Chart

Our thoughts here at the regarding silver stocks to buy and its severe drop-off is many bargain hunters and traders alike will be entering new long positions almost immediately.

Silver and gold stocks should rise against the dollar until the Federal Reserve stops printing money which has not happened quite yet.

Listed below are a few Silver stocks to buy that seem to have nice upside potential based on their chart pattern as well as the bullish indicators they carry.

Silver Wheaton (SLW) – Has been down over 13% in the previous 5 trading sessions while up over 85% year to date in 2011. Has had blowout earnings numbers just recently which could very well be the spark this sector needs in a critical time period.

Silvercorp Metals (SVM) – Has been down almost 18% in the previous 5 trading sessions while showing gains on the year to the tune of 37% year to date in 2011. Its projected earnings per share growth for next year is 43%, which ranks in the top tier of the Silver plays. Coupled with a return on assets of nearly 24% and return on equity of 23% continues to spotlight some sunshine on this shining metal play.

First Majestic Silver (AG) - Has also been down 14% in the previous 5 trading sessions but up a staggering 400% year to date in 2011. It is one of the few pure silver plays in the group. It also has the lowest P/E at 4.70, Forward P/E 8.12 and PEG at 0.49 again catching bargain hunters in the buying mood after many feel this drop was abit extreme regarding its short timeframe.

Well that should be enough stock market news to digest from the Captain today. Time to sign off for now….As always Trade Smart, Trade Well & Stay onboard the StockRunway!

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