If anyone else has been invested in silver miners they might agree that the miners have been rather.. sluggish. Compared to the parabolic moves that spot silver and silver futures have been making it just feels almost disconnected. Is this just lag? What I’m asking is will the miners catch up to the current prices?
Especially after the China export ban goes into effect on New Years, would this be a catalyst for North American miners such as PAAS, AG and SILJ?
What’s up with the disconnect between silver miners and the actual metal?
byu/smolquacc instocks
Posted by smolquacc
4 Comments
Following. I’m wondering too.
I’ve heard they just lag a bit, but who knows? Maybe next earnings they will pump.
The metal is traded on demand, miners trade on hope. Silver prices going up doesn’t mean mining company X suddenly has any way to benefit from this, their price/extraction might very well be limited by physical factors.
If you want a metal play, you buy the metal. Buying miners is like buying Biotech hoping to not catch a cold.
I invested in mining stocks for a while in the late 2010s and early 2020s. I learned that mining stocks have nothing to do at all with the price of the commodity and are one of the most frustrating things I have ever tried dealing with. I wouldn’t touch them with a 50 ft pole.
In my limited experience. At least that’s individual mining stocks. An aggregate etf of mining stocks may do better. Mining companies are very speculative and tend to move up when they get permitting or leasing of a new mine and then later the mine doesn’t have as much of the commodity as they thought or some environmental bullshit happens and they can’t mine it and the stock tanks…