Courtesy of BMO, here are a few charts which plot valuations for silver stocks. The charts cover the last 4 years and categorize the silver stocks as seniors, intermediate and junior. The first chart is enterprise value / EBITDA. The second is price / cash flow.
Chart 1: Silver finds itself between a downtrend and a strong support… Source: Bar Chart (edited by Short Side of Long) Precious metals sector outperformed majority of other asset classes in Q1 of 2014, however that strength has recently dissipated. Whats even more interesting is the fact that while Gold and various miners rebounded powerfully in … Continue reading “Decision Time for Silver”
Silver could be starting the final breakdown we discussed in an editorial about a month ago. Silver broke lower today, hitting the lowest level since February. It is only 6 cents above its December closing low of $19.11. Interestingly, the silver stocks as judged by SIL and SILJ are showing more strength. The bottom two … Continue reading “Silver Breaking Down but Silver Stocks Holding Up”
Here are four charts that breakdown the Silver COT. Data is a week old so keep that in mind. First, here is the general COT. The black is the net speculative position (long) as a percentage of open interest. It has declined materially over the past few weeks. Next is open interest. Interestingly, unlike Gold … Continue reading “Silver COT Charts”
Silver has been in a bear market for almost three years and the recent lack of strength suggests the metal could be headed for new lows. New lows are always bearish until the last one. Our technical work suggests that we should watch for a final low and end to the bear market in the … Continue reading “A Golden Opportunity Coming in Silver”
Throughout 2013 we posted the gold stocks bear market analogs. Now its time for the silver bear market analogs. Silver has had a very weak bounce in recent months and is threatening new lows. This suggests the bear is not quite over yet. However, this chart argues (because of the extended nature of this bear … Continue reading “Silver Bear Market Analogs”