4 Silver Stocks In Bottoming Mode

When inflation is more than temporary, precious metals can benefit.

Many silver mining stocks now appear to be performing at their best. Investors trying to hedge against inflation seem to have noticed that these prices are well known. They stopped falling.

CDE
, formerly known as the Coeur d’Alene Mines:
The Chicago-based trading company, which is headquartered in Chicago and operates five mines in North America, peaked in April at more than 12. Most of it has been in decline since then.

Next, let’s look at the positive divergence between the price and the moving average convergence/divergence index (MACD, below the price chart). “Slightly lower and higher low MACD levels” could be important, especially given that the 50-day moving average (blue line) looks set to rise.

The Pan American Silver Daily Chart looks like this:
This Canada-based company trades on the NASDAQ

NDAQ
The average daily trading volume is around 1.78 million shares. Like the cool chart above, it looks like the 50-day moving average is going up soon. This phenomenon is confirmed by the convergence / divergence indices of the moving averages, which are actively diverging from the current price behavior.

With offices in Denver, Vancouver and Toronto, NASDAQ trades its mines for gold and silver. Look at the descending trend line connecting the June low to the late September low – the MACD indicator below is just diverging. Price chart analysts are following this closely to see if the 50-day moving average (blue line) can exceed the 200-day moving average (red line).

This Canada-based miner trades on AMEX. The company has a price to earnings ratio of 17, a price to book ratio of 1.5, has no long-term debt, and pays a small dividend (0.71%). Silver Corp can almost be considered a valuable stock.

Like the silver mine stocks mentioned above, there is a positive price differential. In other words, the MACD index rose from August to October compared to a “low price” situation.

Investors seem convinced that this classic type of inflation hedge can be useful in a macroeconomic environment. If the Fed’s downgrade were lifted and yields on 10 and 30-year government bonds rose, the impact could be dramatic.

Price behavior in this sector may be important to watch over the next few weeks.

This is not investment advice. Do your own research and check with your registered investment advisor before making a decision.

x