Volatility...
Believers in silver, I ensure I give at least equal weighting to bullion and bullion shares of gold and silver
mining stocks when it comes to portfolio. With a mid and long term orientation, this time right now may, in hindsight, prove to be one of the best buying points in 2011. That may be a stretch but I say that the physical market
will rule the share price of producers such as Impact. I heard Eric Sprott's presentation in Vancouver where silver
headlined as "the investment of the decade". I don't worry too much about price fluctuations of a dollar or two an ounce each day. There are always going to be day traders playing this kind of stock.. The point is to scale into physical and shares during these price corrections. I buy into the correction on serious down days and sometimes on the open the next day if the price is a bit lower the the previous close. The historical ratio of Ag:Au is 16:1 but is currently 49. If gold hits $2100 by sometime this April (a figure given by a Vancouver based chartist referenced by Mr Sprott, that would put silver at $42.80 up to $131.25 using ratios of 49 and 16 respectively at $2100 gold...by April!
Where this would put the sp of IMPACT is beyond me but I'd say north of 2 bucks a share..
I asked Eric about the time it took for the physical silver to be delivered to the Royal Canadian Mint who holds/is custodian of the physical silver owned by the fund. I think this puppy is RRSP eligible but I am not a paid tout
and you had better check with them yourselves. Eric only answered me with a smile and that was the moment
before he took to the stage in front of what must have been at least a thousand people from all walks of life.
Can't wait for the resource definition... See if they time the press release ..