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« Silver Standard Resources Incorporated: Robert Quartermain Resigns | Main | Silver-Prices.Net Portfolio Update 14 January 2010 »
Friday
Jan222010

Silver Standard Resources Incorporated in the Buy Zone

SSRI Chart 23 Jan 2010.JPG


Life in the precious metals arena is aptly demonstrated by the above chart where we can see the dramatic oscillations of Silver Standard Resources Incorporated (SSRI) from overbought to oversold almost on a monthly basis.

The recent drop in the price of gold and silver has hit the associated stocks pretty hard with most taking a haircut in the order of 10% to 20%. These are of course buying opportunities for those who wish to add to their portfolio and those who are looking at the more riskier options trades. Another look at the chart tells us that this stock has made around five highs and five lows over a six month period. Nimble traders who can move fast could have played these waves to their advantage and profit. We, on the other hand tend to invest for the longer run and therefore look at the bigger picture which is time consuming to say the least. However we do occasionally indulge in short term trading via our trading account which currently accounts for around 15% of our cash. Another candidate in the frame for a short term move is Agnico-Eagle Mines Limited so it may eventuate that we trade both or we may settle on just one should the case for the trade be outstanding.


Silver Standard is dependent on silver which is dependent on gold which is an inverse play to the dollar. The dollar appears to benefit when the general market falls, which it has over the last few days attributable to President Obama's comments regarding the banking sector. So we have a political element to throw into the mix for consideration.

This weeks hammering may be over but we have decided not to move until we see some signs of stabilization before we pounce. So if you can find the time have a look at the charts of your favourite silver producers and if the price fits your criteria then add a few more to your stash.

Got a comment then please add it to this article, all opinions are welcome and appreciated.

Have a sparkling week.

All the best.

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Reader Comments (3)

The US$ is on a roll. The USA Still needs customers to buy US Treasuries(Debt). To sell these treasuries the powers that be will crash the stock market. This will send, or force the Global market players into the bond market. Where treasuries will be bought. The massive sell off of the stock market will make the dollar even more bullish. Gold and silver prices will be very cheap. Creating great buying opportunities. Don't be shocked if you see Gold at around the $800 level, and silver below $10.00. The Us government has to refinance 2trillion dollars, and borrow around 2.5 trillion. So, if know one wants to buy treasuries. The powers that be will crash the market, and send the herd into the bond market. $ devalution coming.

January 23, 2010 | Unregistered CommenterJerrold Minyard

What do you make of the abrupt resignation of Robert Quartermain as President and CEO of SSRI?

January 25, 2010 | Unregistered CommenterDoug Malcolm

Jerrold,

We will be shocked if gold goes to $800, but you never really know.

Doug,

Dont like it one bit.

January 25, 2010 | Unregistered CommenterSilver Prices

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