Market Overview

Some Silver Stocks To Consider (SLV, SLW, AG)

Silver is going ballistic on the Middle East tension, as silver and gold have now become defacto currencies. Silver is moving more than gold as there is another huge short squeeze going on in silver that has been occurring for the past week or so.

Late last year, it was first bandied about that J.P. Morgan (NYSE: JPM) had a huge short position in silver, and was getting killed being short the precious metal.

J.P. Morgan had been selling massive amounts of paper silver in the futures market, and was able to suppress the price. These positions are believed to be naked positions, and some have said that J.P. Morgan is short more paper silver than actually exists in the world, thanks in part to derivatives.

It also would seem that supply disruptions are taking place in the silver market. The futures have now gone from significant contango to backwardation in a very short period of time, suggesting that near-term demand is outstripping supply. It also could be a sign of a major short squeeze.

We've seen silver run from around $27 per ounce to just under $33 per ounce where it is today.

Some names to consider in the silver market are iShares Silver Trust ETF (NYSE: SLV), First Majestic Silver Corp. Ordinary Shares (NYSE: AG) and Silver Wheaton Corp. (NYSE: SLW).

Posted-In: Long Ideas Trading Ideas

 

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