Silver continues to look attractive, while silver stocks remain even more so. I’ve been buying pretty aggressively lately – in part because silver bottoms on average right around this time of year, writes Peter Krauth, editor of Silver Stock Investor.
To be clear, we could still get more weakness in silver and silver equities. But, in my view, the risk of significant downside is limited. I’d rather be buying gradually at these levels than to risk missing what looks like a drawn-out bottom.
While we are in the middle of summer, there’s a phenomenon called the summer doldrums. That’s when silver, gold, and their corresponding mining stocks tend to bottom and/or move sideways.
This is not a guarantee. But as you can see from the chart, silver bottoms on average right around this time of year. That’s a pretty compelling argument, especially given silver and silver equities’ price action of recent weeks. And that’s another reason why I’ve been actively buying.
