Silver prices have risen moderately in recent trading and yet many silver stocks are falling.
Two of our stocks are bucking the trend in silver stocks, rising nearly 10% in the last few trading sessions. This is what we, as investors want to see. Silver stocks that rise considerably when silver prices rise moderately. When silver prices rise considerably at the end of the summer, these silver stocks will lead the way to incredible gains.
If we take a look at the chart of the XAU Index of Gold and Silver stocks, we can see that it has been declining throughout the last few trading sessions.
In spite of the index taking a drop, Pan American Silver (NASDAQ:PAAS) and Silver Standard (NASDAQ:SSRI) have managed to put gains of nearly 10 percent in recent trading. This shows a great deal of strength in these two silver stocks. They have not been sold off as other silver stocks have and investors have actually been buying them up.
Could it be that somewhat old-fashioned reason; good fundamentals! Silver Standard and Pan American Silver are two of the best silver companies on the market at the moment. Investors are realizing what a great position these two companies are in, even at current silver prices. They are in an even better position if you believe, as we do, that silver prices are on the verge of a magnificent rally.
These two companies have been performing exceptionally well and they will do even better over the coming months. Silver Standard made a new all time high this year, but silver prices have not made a new high! The same is true for Pan American Silver and so this shows that these companies are making good money at current silver prices and the stocks are performing accordingly. When higher silver prices come to town, these stocks will truly soar.
Pan American Silver has glowing financials that will only get better with rising silver prices. In 2005 the company had US$122.40 million in revenues and raised this to US$255.45 million in 2006. The total value of its assets also rose, from US$362.28 million in 2005 to US$680.00 million in 2006. Similarly with Silver Standard, the value of its assets are growing, from US$219.29 million in 2005, to US$471.01 million in 2006 and in Q1 2007 the total was US$512.32 million. This continued growth in both this stocks will be very beneficial to the stock price.
We think silver prices are in for another great rally at the end of the summer and these two silver stocks will be the leading the surge that will take place in silver stocks worldwide. We continue to be shareholders in both of these companies and we are keeping them as a BUY in our free silver portfolio.