GPL, MGN, ASM: Silver Stocks Poised for a Gold Run?
Silver stocks such as Great Panther Silver (NYSE: GPL), Mines Management Inc (NYSE: MGN), and Avino Silver & Gold Mines (NYSE: ASM) have been buzzing lately with volume increases. Incidentally, this has got a connection with gold.
Silver is nowhere a standard when it comes to risk averse investing. Unlike gold, the metal largely gets consumed in industrial and retail operations and has limited applications in national economics or currency balancing. While gold scores higher during times of economic uncertainties as a safe haven investment, silver has its advantages when the prices of gold go through the roof. It is not difficult to see why investors tend to shift focus from gold to silver once economic circumstances become buoyant. For one, silver’s industrial demand is triggered with higher economic activity leading to price spurts. At the same time, silver’s retail demand gets a boost because of high gold valuations. For these reasons, price movements in silver are often more pronounced than in gold.
All these factors allude that a smart rally may be brewing in silver stocks such as Mines Management Inc (NYSE: MGN), which largely remained stable in the current month but saw some delivery based buying on Thursday and Friday. Earlier this month, the company announced having signed a letter of intent with Estrella Gold Corp to acquire up to 75 per cent stake in the La Estrella gold and silver project in central Peru. The region has a history of exploration successes in previous projects. Currently trading at $2.19, the stock has a 52 week range of $ 1.35 - $ 4.19.
Great Panther Silver (NYSE: GPL) gave a clear breakout in January crossing its trend line resistance decisively. Having stayed above the 20 and 50 days moving averages, the stock is fast approaching its 200 day moving average where it could face some stiff resistance. Buying in the stock further strengthened after the company reported encouraging production for the fourth quarter earlier this month.
Shares of Avino Silver & Gold Mines (NYSE: ASM) have moved up 28 per cent in the last month as the company announced having drilled 996 gram/ton at the San Gonzalo zone in its Durango property. Although a small player, Avino is a debt free company and is well-funded to continue its development plans.
Do NOT buy or sell ASM, GPL or MGN until you have read everything.
SmallCap Network provides comprehensive research and opinions on ASM, GPL and MGN. |
 |
|
| Date: | May 25, 2013 | |
| Price: | Free | |
| Example Preview: |    |
|
