Tuesday, November 9, 2010

Has Endeavour Silver's (AMEX:EXK), MAG Silver's (AMEX:MVG), and Silvercorp Metals' (NYSE:SVM) Time Come?

Now that silver has definitely turned the corner and is beginning to soar, the lagging silver miners like Endeavour Silver (AMEX:EXK), MAG Silver (AMEX:MVG) and Silvercorp Metals (NYSE:SVM) are about to have their moment, and investors should strongly benefit from them and others with strong exposure to silver, as it should begin to outperform gold going forward, even though gold will remain a great investment, as well as many gold mining companies.

Silver miners in the last quarter who have reported so far have done well, and that was in far less opportune times. That has changed over the last several weeks, and the ratio between gold and silver prices is beginning to narrow back to historical norms, and that means silver prices are rising as measured by percentages, faster than gold is.

The recent earnings report from Pan American Silver (Nasdaq:PAAS) is one example of that.

Endeavour Silver traded at $6.61, gaining $0.20, or 3.12 percent at 1:08 PM EST. Mag Silver was up to $10.30, increasing $0.30, or 3 percent. Silvercorp Metals Inc rose to $12.97, gaining $0.25, or 1.97 percent.

There is no doubt the time for silver miners place in the sun is here, and the overall sector looks good, but we still need to look at those with best cost controls in place, even though the increase in silver price in the near term will be forgiving to those with higher costs.

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