Home > Stock Charts > Chart Update: Pan American Silver PAAS

Chart Update: Pan American Silver PAAS

Pan American Silver PAAS has been on a wild ride. It recently agreed to purchase Minefinders MFN. In theory, the market reaction has not been positive as the price of PAAS has fallen. However, it is possible that there is more than meets the eye.

First off, for context, let’s take a look at a 5-year chart of PAAS.

Pan American Silver Stock Chart

Pan American Silver Stock Chart by YCharts

As you can see, PAAS encounters some pretty stiff resistance near the $40.00 mark.

As a silver miner, PAAS also moves in concert with silver prices to a degree, so let’s look at a 5-year chart of the silver price.

Silver 5-year price chart

Silver 5-year price chart

Notice anything interesting about the PAAS stock price and the price of silver? Over the long term, the price of PAAS is rising in near percentage lock-step with silver.

Because silver and PAAS move together, the 5-year chart of PAAS doesn’t necessarily look that exciting.

PAAS 5-year chart 3-23-12

The PAAS 5-year chart isn't a thriller

More interesting is a more recent chart.

PAAS Chart 3-23-12

PAAS price is straddling the sell trigger line

Where the PAAS price goes will largely depend on the price of silver. While my research of the general state of the economy, central bank intervention in said economy, and fundamental supply and demand lead me to believe the silver price will rise long-term, you should do your own research and act accordingly.

Disclaimer: The above is for informational purposes only. This should not be considered investment advice. Any investment decisions are your own and should be made after conducting your own independent research and / or in consultation with a professional investment advisor.

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