Silver Rises Back to Pre-Election Price

[CommissarJones]

Silver was fixed today in London at $18.27/ounce, according to figures from the LBMA. That compares with $18.22 on Nov. 7, 2016, the last fixing before the U.S. presidential election that saw Donald Trump installed in the White House. So silver has now retraced the entire drop after the vote that pulled the price as low as $15.74 on Dec. 23. Gold is also rebounding nicely.

[brugen]

Commissar,

Although Silver has done well today the silver miners seem to have taken a kicking. Fresnillo is down 0.7% and a tin pot US miner, Great Panther Silver, I have an interest in is down 5%. Any thoughts on why there may be this disconnect?

Cheers

brugen

[CommissarJones]

Any thoughts on why there may be this disconnect?

Hello brugen -

I have no specific insight as to why shares of Fresnillo and Great Panther Silver were down on Friday when the silver price was up. Maybe some holders opted to take profits, as a glance at charts shows that both stocks had good runs in recent weeks. And Friday seemed to be something of a down day for London-listed mining shares generally, with Anglo American, Rio Tinto and BHP Billiton all declining.

It seems to me that it would be unrealistic to expect shares of commodity-producing companies to move every day in absolute lockstep with the underlying commodities. However, I am confident that over time, the stocks will broadly reflect movements in the prices of those commodities.

(I am long physical gold bullion and Fresnillo shares.)

[brugen]

Any thoughts on why there may be this disconnect?

It seems to me that it would be unrealistic to expect shares of commodity-producing companies to move every day in absolute lockstep with the underlying commodities. However, I am confident that over time, the stocks will broadly reflect movements in the prices of those commodities.

Commissar,

Absolutely agree on both counts. After posting and reading your reply I did ask myself why I asked such a dumb question

Cheers

brugen

[CommissarJones]

This piece discusses the recent selling pressure on precious-metals shares even as the metals themselves were performing well.

http://energyandgold.com/2017/02/27/min ... -bad-news/