Silver Stocks: Take Your Time!
Print This Post
| Topic: Silver Mining Companies — April 1st, 2008
To many investors on the sidelines who have patiently waited for a correction in silver prices in order to buy silver stocks, it must look as though that opportunity has arrived.
It is true that the recent pull back offers cheaper entry levels than just a few weeks ago and yes you are getting a bargain compared with those silver stock prices. This is also a bull market for precious metals so maybe buying now for the long term is the correct action to employ. If you are able to withstand the volatility in the short term and adopt a buy and hold regardless strategy, thinking of your acquisition as your core holding, then by all means take the plunge. We don’t wish to put you off, but we believe that we are in for some sideways movement and some consolidation before we see a rally to higher ground. But, we have been wrong before. Anyway our approach remains the same in that we will take our time and try to pick our shots carefully, thus hopefully, maximising our profit potential.
As regular readers will know we have already placed orders to buy more of Endeavour Silver Corporations stock and today we almost got there but the stock just did not trade low enough. Rats! We are a little disappointed but this is not the time to chase stocks. We have done the work, placed the orders and now we must wait.
In the meantime though, we are working on establishing price entry levels for other quality silver stocks which we would like to acquire at the right price We stress the right price because we may have to wait a while, even though silver stocks are off their peaks and growing more attractive every day. Sometimes they will come into range, tease us for a moment and move higher leaving us empty handed. But, if and when they come back and we do secure our purchase we will feel comfortable that the downside is limited and the upside should be very rewarding.
If you have already prepared your list of future acquisitions and set the price that a particular silver stock is worth to you, then please add it to the comments box as this gives some semblance of balance for our readership.
If you would like to follow our adventures in the silver sector and receive our frequently published and soon to be legendary free newsletter then please click this link.
Related Articles
The DOW: Overbought?
The Precious Metals Correction
SILVER PORTFOLIO UPDATE: 23 November 2006
SILVER: Preparing to challenge recent highs?
SILVER: Are you ready?
|
|
![[Most Recent Quotes from www.kitco.com]](http://kitconet.com/images/quotes_2a.gif)
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/charts/metals/silver/t24_ag_en_usoz_2.gif)
Bob,
I have had an open order to buy EDR.to for quite a while. But on Apr. 1, my main focus is loading up my truck with gold stocks. In the meantime, I received an alert indicating that earnings for EDR.to will be out in a few days. At that point, I did not cancel the order. But now I will because I want to buy in a different account. In that case, I’ll wait till after the earnings before I place another fresh order.
ep
Comment by ep — April 1, 2008 @ 3:40 pm
I also had a buy order in for Endeavor Silver—but I was a little more patriotic than you since I used a Canadian exchange and placed a buy order for EDR at 3.25 . I just got home—my order is still unfilled and the price is 3.41—now its 3.39. I cancelled the order—I think I’ll put it in again at 3.00. I’ll let you know what happens.
bobi
Comment by bobi — April 1, 2008 @ 5:51 pm
Am watching Silver Wheaton. 15.00 looks like a good entry point.
Comment by Mike — April 1, 2008 @ 8:28 pm
Mike, So are we!
Comment by Silver Prices — April 1, 2008 @ 9:46 pm
Question for Bobi
You wrote: “I was a little more patriotic than you ……”
Were you talking to Bob? What exactly do you mean by that?
In my opinion, commodity/stock exchanges and the internet are, in a sense, GLOBAL by nature.
From the company’s web site - “Endeavour Silver Corp. (EDR:TSX, EJD:DBFrankfurt, EXK:AMEX) is a Canadian based silver mining company focused on the growth of its silver production, reserves and resources in Mexico.”
If someone lives in the US and has a local brokerage account in US$, what’s wrong with that person buying the stock EXK from AMEX? Are you saying that US resident is not patriotic because he/she doesn’t buy the shares of a US company and supports a Canadian company instead?
Is Endeavour Silver Corp. not patriotic because they focus on properties in Mexico and not Canada? Any Canadian who supports Endeavour is in turn not patriotic?
I have no clue what Bobi was trying to say.
ep
Comment by ep — April 1, 2008 @ 10:02 pm
We have more than one account because we believe that it is prudent to do so. When we make a purchase we need to consider how much cash we have in each account before we can make the trade. Whether we buy in Canada or the US is not important to us, but having a choice is important. Maybe Bobbi meant it as a joke?
Comment by Silver Prices — April 1, 2008 @ 11:24 pm