Though SLV hasn’t actually taken much silver off the market over the last year and a half or so, there is no denying its impact since inception. And when silver starts to rock once again, SLV ought to see a healthy flow of stock-market capital.
Junior mining stocks are not for the faint of heart. You need to arm yourself with patience and be willing to allow a given investment months and even years to play itself out. Good management needs time to execute, and resource exploration is a tough business.
Shares of Hecla Mining Co. have been beaten up during what should be extremely bullish conditions for the largest silver miner in the United States. I think that presents some value for investors willing to take a contrarian view.
A few months have passed and we were interested to see how silver miners have reacted to Eric Sprott’s open letter calling silver miners to arms last November. Mr. Sprott urged the miners to think about bit more deeply about their precious product.
The yellow metal climbed to $1,667.90 yesterday its highest since Dec. 13 and an increase of 6.7% in 2012, as the dollar fell. The dollar's weakness was attributed to poor US production and homebuilder data combined with Greece nearing a deal on debt.
Although the Canadian federal police have contacted the company to offer help in finding an anonymous author, the company appears to be defending itself well. The miner reports profits in Chinese subsidiaries and offers cash position proof.
Traders have to remember they are a zero-sum game. Every short has an offsetting long, and vice versa. It's easy to get bogged down and derailed in the COT, giving this report more credit than it deserves.