Loading ...Are Silver Miners the Most Undervalued & Best Investment Opportunity Around?
I’m asking. Not telling.
I do think so, but someone talk me out of it?
Here’s the Silver: Gold chart for last 34 years. (As far back as stockcharts allows me)
Silver is undervalued compared to gold:
Silver is 1/2 its all time high from 1980.
Gold is 2.5X its 1980 high.
But the silver miners are undervalued compared to silver so wouldn’t that make them an even better deal if we should be buying undervalued assets with a Warren Buffet mentality?
SIL and SILJ have been around for around 13 and 11 years respectively.
SIL is the silver miners ETF and SILJ is the silver junior miners ETF.
Here is SIL relative to Silver:
Notice a possible double bottoming is happening. If we are to Warren Buffet style buy undervalued this is the time.
SILJ: Silver is just as good.
So bottom line… If we’re supposed to buy undervalued, silver is a better bet than gold but the silver miners are undervalued compared to silver so it seems like they may be one of the best deals around!?
For this reason, SILJ is one of my favorite investment vehicles right now.
Is there any scenario where silver miners don’t outperform silver towards the end of a major bull run?
I’m with you Sir Chuck
SILJ ! I have pretty much given up trying to Pick individual stocks SILJ has all the best ones in it and it is hedged against Mine specific disasters that occur all the time because the risk is spread out of course
The only exception is PASS …I like the Argintina exposure
Good Post Chuck
My thoughts exactly Fully. Spreads that risk. Thanks!
SILJ still looks good.
I commented on it along with FXY a few weeks back.
The pullback for SILJ breached 9, but it was a quick flush around FOMC pivot.
It still looks OK. Another drop soon wouldn’t surprise but a buying opp.
Bull markets mean higher lows (at higher degrees)
And technicals on the plus side of longer term zero lines.
Neither of those quite there yet.
Big picture (for me) is $USB chart. Break of 40yr bull, and 5 down in price.
Now in retrace as bigger abc, likely to backtest the broken TL. MIGHT TAKE A WHILE.
That’s a bullish setting, but leading into an EPIC bull trap. Ie, B&H risks galore.
If this is a genuine trending bull market (unlike what we have experienced since 2016), then I think the silver miners have an excellent chance of making huge returns in the next few years.
I am cautiously optimistic that we are going to get a final 1-2 month push higher in the miners before the cycle tops. I have large positions in HL and EXK and their 20 day bollinger bands have tightened up very significantly.
Whichever way they ultimately break, I wouldn’t look past the possibility of an initial headfake for a few days before a more durable trend in the opposite direction begins.