The price of gold has pulled back in the past two day on profit taking following the ECB’s announcement to decrease its interest rates to -0.4%. Since that time, gold prices are down about 2.0%.
Meanwhile, silver prices have held steady, tacking on a slight gain of 0.3% over the same time.
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However, the drop in gold prices has caused all mining stocks to pullback – even companies that predominately produce silver.
As a result, I think silver stocks could be generally undervalued right now.
| Company | Symbol | Change Since Friday’s Peak in Gold Prices |
| Pan American Silver | NASDAQ: PAAS | -4% |
| Silver Wheaton | NYSE: SLW | -3% |
| Hecla Mining | NYSE: HL | -4% |
| Tahoe Resources | NSYE: TAHO | -3% |
I recently posted an article here in Energy and Capital explaining why I really like silver in the near-term and I talk about Tahoe Resources (NYSEL TAHO) as one of my favorite silver stocks.
Check that article out here.
Luke Burgess
Energy and Capital
