Get ready. The world is just beginning to learn about Silver. With so very little physical bullion silver stocks in the world, when investors finally get “Precious Metals Religion,” who knows how crazy the price can go. This isn’t hype… just plain old fashion common sense, logic, and fundamentals.
Silver and the primary miners had a positive week in the markets. Silver increased 71 cents to the important $19.75 level and finished 3.73% higher for the week. I wrote about this technical level in my previous article, IMPORTANT KEY LEVEL: Silver Needs To Break Above This Price. I will be doing an update on the silver price charts this weekend.
However, I wanted to show what is taking place in the leading primary silver miners. Typically, when the silver price moves higher, the mining stocks enjoy much better returns. This is well-known in the industry. One stock certainly outperformed the rest… and that was Mexico’s Fresnillo (LON:FRES). I have recently become focused on Fresnillo PLC because I see some very interesting positive signs. I will be writing about this in the coming days.
Here is the past week’s stock performance of eight of the leading primary silver miners.
Fresnillo PLC’s stock price surged by 18% for the week, followed by double-digit gains from Hecla Mining (NYSE:HL) (13%), Coeur Mining (NYSE:CDE) (11%), and Endeavour Silver (NYSE:EXK) (10%). What’s interesting, is to see First Majestic Silver (NYSE:AG) underperformed the group at only 1.8%, when it was the darling back in early 2016. First Majestic’s stock went from $3 in early 2016 to a peak of $19, just six months later.
I believe the primary silver miners are going to surprise the hell out of investors when individuals start to move out of soon-to-be collapsing Tech Stocks and into the mining sector. There just aren’t that many silver producers in the world. There’s probably about a dozen primary silver mining stocks in the world and a bunch of penny-stock junior explorer wanna-bes… BUYER BEWARE.
Honestly, I am puzzled as to why Fresnillo PLC’s stock price is so low. Unfortunately, Fresnillo only trades in the United States as an OTC – Over The Counter Stock with a pink sheet five-ticker symbol (FNLPF (OTC:FNLPF)). Regardless, Fresnillo PLC’s stock price jumped $2.14, or 18% this week.
You will notice that Fresnillo PLC ended the week right on the 200 Week Moving Average (WMA) of $13.97. I mean… it closed RIGHT ON the 200 WMA, to the penny. While many precious metals investors don’t follow or care about technical analysis, most of the professional traders most certainly do. So, it will be interesting to see how Fresnillo PLC stock trades next week.
Typically, after a good run-up, there could be a correction at this technical level before Fresnillo’s stock moves higher. Furthermore, because the silver price also closed right at a significant technical level this week, these primary silver mining stocks will mirror what happens to silver.
I will be writing more about the Gold and Silver Mining Stocks in the future, with a possible Subscription Service. I believe we are going to see big moves in many of these primary silver mining stocks. But, a WORD OF CAUTION. This type of investment goes into the “SPECULATION” category. It would be very unwise to put all one’s funds into the miners, even though the reward could be great. There are a lot of risks attached to these mining stocks.
So, if an individual is going to invest in mining shares, they should first have most of their funds in physical precious metals with an optional smaller portion to speculate on stocks. Thus, if one loses everything speculating on stocks, then it’s not the end of the world because you were wise to invest mostly in physical gold and silver bullion.