For the past month Silver has retraced some amazing gains, pretty aggressively, I may add. But looking at the chart of the miners I selected below, it sure looks like consolidation to me, on the verge of a new upleg.
Up until the unrest in Tunisia became a contagion in Egypt, I was in the camp of silver going to the $24-25 dollar range, and planned on holding any new purchases until the latter part of February to let that scenario play out.
In March, silver the open interest is growing incredibly, and in that OEX the buyers can demand the physical. Also, investors are emptying the Comex of inventory. My view is speculators sensing a squeeze will start putting upward pressure on the metals after the February OEX closed.
Now back to North Africa, this is a game changer, people are being reacquanted with risk, and the Precious metals benefit from this. Also, I cannot see a short term scenario that stops the FED from doubling our money supply again in the next twelve months, So I started buying back into my silver positions this week.
Below, I present three companies for you, AG is a core holding, and above $12.40 I will complete my buy program (gap fill and hold), EXK, I think has already broken out, and added to already. Finally, HL, it looks like AG's chart (I do not own it).