SILVER & SILVER STOCKS: Top Performing Assets In 2016

Silver and the silver mining stocks are some of the top performing assets in 2016.  Silver was the top performing physical asset in the metal-commodity basket gaining 27% since the beginning of the year.   Silver’s gains surpassed West Texas Oil which increased 24%, zinc at 20% and gold at 19%:

Top-Performing-Commodities-&-Metals-2016-YTD

As we scroll down the chart we can see that copper, the king base metal, placed towards the bottom of the list at a mere 5% gain, while lead recorded a 2% loss and natural gas declined the most at 8%.

Even though silver’s 27% increase for 2016 was the best performing asset in the chart above, gains in the primary silver mining sector were even more astonishing.  While silver rose 27% in 2016, some of the best performing primary silver miners stock prices shot up 200-400% in the same period:

Top-Primary-Silver-Miners-Performance-2016-YTD

Silver Corp Metals enjoyed the best performance in the group by rising 400% since the beginning of the year.  Silver Corp Metals has been one of my lowest cost primary silver miners in my group.  However, Silver Corp received a lot of bad press several years ago which made it a target of excessive shorting.

Silver-Corp-Metals-StockAt one point, Silver Corp Metals reached $15 in April 2011.  But, over the next five years fell to a low of $0.41 in January this year.  Silver Corp Metals increased from $0.47 on Dec 31st 2015 to $2.35 on April 28th 2016.  Again, this was an impressive 400% move in less than four months.

Silver Corp Metals was delisted from the New York Stock Exchange with ticker symbol SVM and is now trading as a pink sheet under SVMLF.  However, I believe as the price of silver continues to move higher, Silver Corp Metals will be trading once again on the NYSE.

As we look down the list we can see next best performers starting with Great Panther at a gain of 294%, Alexco Resources with 253%, Aurcana with 235% and First Majestic at 206%.

The interesting thing about the gains in these primary silver stocks is that they were not based upon their low cost or productivity per say.  For example, Great Panther is  one of the highest cost producers in the group last year, based on my analysis, but enjoyed the second best performance.  Moreover, Alexco Resources shut down their only operating silver mine back at the end of 2013, but their stock price had the third best performance jumping 253%.

Actually, most of the lowest cost producers, First Majestic (206%), Fortuna (175%) and Tahoe Resources (57%) saw their performance in the mid to lower half of the group.  I was actually surprised by the result after tabulating the data.  One of my personal favorites is Fortuna because they rank in the top four lowest cost producers in the group and plan on increasing production over the next 3-5 years.

Who would have every thought Alexco Resources with a stock price of $0.34 at the beginning of the year, with no producing silver mine, would move up to $1.20 and enjoy a 253% gain??  It seems as if investors piled more into the silver stocks with the lowest price at the beginning of the year:

Aurcana JAN 1st = $0.085

Alexco JAN 1st = $0.34

Silver Corp JAN 1st = $0.47

The higher priced stocks such as Pan American Silver at $6.49 on Jan 1st and Tahoe Resources at $8.60, reported some of the lowest gains in the group.  So, the idea that picking stocks based on sound fundamentals here doesn’t seem to fly….. LOL.

Regardless, I believe the primary silver mining stocks will be some of the best performing assets in the entire market over the next 3-5 years.

If you have yet read my previous article, PRECIOUS METALS INVESTOR: Must See Important Charts & Data, you will find some interesting information.  Also, please checkout our new PRECIOUS METALS INVESTING page.

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11 Comments on "SILVER & SILVER STOCKS: Top Performing Assets In 2016"

  1. Will it last or will the comex commercials with put down their heavy hammer while chinese are watching … as usual ???

  2. The recent “as usual” attempts have been highly ineffective.

    If they do succeed in a “slam down” Monday or Tuesday, we get to see how quickly it will rebound. If they wait until later in the week that genie may be rather fat to get back in the bottle.

    • They will probably attack on the eve and after the NFP numbers friday and with the ISM services which will be absolutely stellar as usual.

      COTs have just been released : unbeliveable confidence of the commercials which huge additional shorts, the hammer will be apocalyptic.

      The only exception would be if finally chinese would find some balls between their legs in the meantime, which is not very probable at all !

  3. “COTs have just been released : unbeliveable confidence of the commercials which huge additional shorts, the hammer will be apocalyptic.”

    I suspect the hammer will hit rubber, push it down briefly, and the rebound will be the thing to behold.

    It isn’t confidence but sheer desperation. Commercials are just doing the bidding of the central bank[s] treasury, and the rest of the government[s]. If they get hurt on their shorts what difference does it make? Government and central bank just gives them more paper or digits.

    • If you are right and they succeed in only a few fall, it would indeed great success for longs.
      However I note the real test is the 1300/18 which none has been broken out even in intraday.
      For now desperation is more for poor longs that commercials who have won every time for many years now. However the mining shares rise is a good signal but for now, no break out have been completed as far as the metals are concerned.

  4. If you are right and they succeed in only a few fall, it would indeed great success for longs.
    However I note the real test is the 1300/18 which none has been broken out even in intraday.
    For now desperation is more for poor longs that commercials who have won every time for many years now. However the mining shares rise is a good signal but for now, no break out have been completed as far as the metals are concerned.

  5. silverfreaky | April 29, 2016 at 11:49 pm |

    For me it looks as it is arranged to go up in steps.Look to the HUI.Sometimes it looks as all of the involved parties speak together when the next up step has to come.

    In Europe Mr. Draghi wants to buy bonds of companys.Exactly what I say happens now.The ECB buy what they can.Depts will be outsorced to the ECB.The interesting thing is what happens with the USA?

    The US-economy is much more worse as the officials say.Peter Schiff explains this nearly each day.
    When will the hollywood show be revealed?

  6. OutLookingIn | April 30, 2016 at 10:28 am |

    Cartel Lines in the Sand.

    Next major resistance for silver is the $19.00 level
    This acted as support from June 2013 – August 2014
    Now a major barrier to a break out.

    Gold is a little different with minor resistance at the $1,350.00 level
    However it will be defended by the cartel.
    Next major resistance is at the $1,550.00 level
    Which acted as support from October 2011 – April 2013
    This barrier will be strenuously defended by the cartel.

    Mind you, all could change with any exogenous market shock.

  7. silverfreaky | April 30, 2016 at 11:14 am |

    The mineros are normally pre-running.When the gold price confirms this than we had for shure the new bull-run.
    Maybe we running direct to 1400$.Good for holder of miner stocks.I want to see the banksers jumping
    out of the highrise.

  8. Percentages as an analytic tool can be quite deceiving when used for penny stocks. Let’s just look at Aurcana for example. The fundamentals stink, it lost the La Negra mine in November 2015. IMO, it is better to own a fundamentally solid company that appreciated at a lower % rate than one of these roll the dice plays. Here what http://www.goldsilverdata.com/company/54-Aurcana-Corp.html had to say;

    Aurcana Corp is an emerging mid-tier producer. They have a FD market cap of only $11 million, with future reserves valued at 14 cents an oz. Their market cap was $545 million in 2011. They have two solid properties (La Negra in Mexico and Shafter in Texas). La Negra is producing 3 million oz of silver equivalent at $16 all-in costs. Shafter is on care and maintenance and can be restarted at higher silver prices. However, they have $33 million in debt, no cash, and no cash flow. Plus, they just settled a class action lawsuit for $5 million that is due.

    This stock is the ultimate gamble. If silver prices spike before they go under, this stock will be a 5 bagger very quickly and the possibly a 50 bagger long term. The upside is huge. But can they survive? I would say the odds are low. I’m not sure if they can last two more quarters with low prices. But if we get a spike in prices, their Shafter mine is waiting to be restarted. This could be a 5 million oz producer.

    11/16/2015: Aurcana lost their La Negra mine to its creditors to eliminate their debt. They still have the Shafter mine.

  9. “…the veracity of the COT data is predicated on the reliability of reports generated by the likes of JP Morgan, HSBC and Scotia. If these banks are providing bona fide, non-fraudulent Comex data reports, it would be the only area of their entire business for which they are not publishing corrupted financial information….”

    http://investmentresearchdynamics.com/silver-and-mining-stocks-continue-up-the-wall-of-worry/

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