Heavy Metal: Silver Tests Its Support Line

The video discusses the recent decline in silver prices, which have fallen below a key support level. Gold is also nearing its support line, while base metals like copper are testing their own support levels. Despite copper's primarily industrial use, it is behaving similarly to precious metals. The video questions the wisdom of investing in mining companies like Newmont, Goldcorp, and Barrick, given their high earnings multiples compared to the S&P 500, especially as metal prices fall and earnings may be affected.

What recent change has occurred in the silver market?

• Silver has remained stable at $19.

• Silver has increased to $25.

• Silver is now trading at $30.

• Silver has broken its support level of $19.

What is the current status of gold in relation to its support line?

• Gold is trading far above its support line.

• Gold has broken its support line of $1200.

• Gold is unaffected by market trends.

• Gold is close to its support line of $1200.

Why is it surprising that copper is testing its support line?

• Copper is primarily used for industrial purposes.

• Copper is a precious metal like gold and silver.

• Copper prices are usually stable.

• Copper has no industrial use.

What is the concern for mining companies like Newmont, Goldcorp, and Barrick?

• They are trading at low earnings multiples.

• They have no competition in the market.

• Their earnings multiples are higher than the S&P 500.

• They are unaffected by falling metal prices.

How do the earnings multiples of mining companies compare to the S&P 500?

• They are lower than the S&P 500.

• They are not affected by the S&P 500.

• They are higher than the S&P 500.

• They are the same as the S&P 500.