Silver miner performance year to date

Below is a year to date daily chart of select Silver miners vs SLV which will represent Silver.  Overall returns can be viewed as the 'strength' of the company as viewed by investors.

It is interesting that not all Silver miners follow the price of Silver as seen above.  Year to date returns as of Oct 28 for SLV and select Silver miners are:

iShares Silver ETF SLV:   20.57%
Fisrt Majestic AG:  36.25%
Endeavour EXK:  26.58%
Global X Silver Miners SIL:  2.5%
Silver Standard SSRI:  -17.76%
Pan American PAAS:  -20.03%

The mid tier Silver miners First Majestic and Endeavour are positive for the year and have out performed the physical Silver year to date while the major Silver miners SSRI and PAAS have under performed. 

I've heard David Morgan state that he was rebalancing his portfolio at the start of this year and it may be something that PM investors may want to do each quarter or on a yearly basis.  He mentioned that he was focusing on mid tier comapanies for 2011 which has been good advice as seen with the companies listed above.

If you were to liquidate your portfolio of PM companies and reinvest the proceeds back into the PM industry, your allocation and the companies that you selected would probably be different than what you have now.  I plan on selling portions of certain miners before the end of 2011 and rebalancing for the 2012 year. 

Alexco Resources

Daily chart of Silver miner Alexco Resources.  Google them and check out their company website and fundamental information.

You can see that Alexco has been a volatile stock with swings up and down over the past 11 months. I expect to continue to see the swings in this stock with a upside trend as long as Silver is on the rise.  Look for low points in the RSI (30) and sell points near the RSI 60/70 level.

Disclaimer:  At the time of this writing, I have a position in Alexco Resources. Ticker - AXU

Silver ETF SLV on the rise

On September 26, 2011, Silver (ETF SLV) hit a oversold reading of ~14.03 on the RSI. For traders that are watching Silver, this was a good time to accumulate shares of SLV or Call options depending upon ones strategy.

The RSI is close to a 50 reading and rising.  Futures swing traders and hedge fund speculators may be accumulating positions for a potential price appreciation in November...?

The MACD has crossed over and is also trending upwards. In these markets, no technical indicator will tell you what will happen tomorrow, but it does look like Silver and select Silver miners may be heading for a potential rally.

Silver Price Manipulation debate - Kitco

Silver price manipulation debate between GATA's Bill Murphy and CPM Jeffery Christian