Today's chart is proof that when gold and silver move higher, the returns in gold and silver stocks can get ridiculous.
About a year ago, our colleague Matt Badiali told his S&A Resource Report readers to buy shares in Silvercorp Metals, one of the world's elite silver stocks. Silvercorp mines several extremely rich silver deposits in China. Matt saw the stock as a way to profit from a bull market in gold and silver, plus China's mushrooming demand for the stuff.
At the time of his recommendation, Silvercorp shares traded for around $3.25. Silver has climbed about 25% since then. In an incredible example of the leverage gold and silver stocks offer to the underlying metals, Silvercorp has almost tripled during the same time.
How much higher could Silvercorp go if gold and silver continue their bull markets? Let's just remember legendary speculator Doug Casey's observation: The gold and silver stock sector is tiny compared to the rest of the market… and a widespread rush to buy these companies would be like "trying to siphon the contents of the Hoover Dam through a garden hose."
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