Searchlight Innovations Inc T.SLX

Why we're not stupid

[twaver]

Those of us who added to our Silvermex positions when silver was in the forties were not necessarily being stupid.  Looking at the charts, Silvermex peaked around the beginning of the year.  Yet silver at that time was only around $30.  With silver pushing $50, it had become obvious that one of two things had to happen.  First, the silver stocks - and silvermex in particular - could rally in catch-up mode, making us a quick and substantial gain.  Secondly, the metal price could collapse, with the silver stocks not participating in the last four months of gains in the metal.  Unfortunately, the latter seems to have been what transpired.  Of course, the stocks are participating in the collapse of the metal.  But this may soon present us with an opportunity to buy at stock prices that were in place when silver was back in the low twenties - even if silver doesn't revisit those lows.  Perhaps next time (assuming the bull market is not over, as I do), the stocks will lead the way - or at least participate in the metal's rally.  I consider myself fortunate to have unloaded some metal in the mid- and upper-forties.  But I did also add some "undervalued" silver stocks at those prices.  Good luck to all.