KITCO NEWS - Although silver (SI) has stolen gold's thunder this week, managing to hit an 11-month high Wednesday, one famed geologist says he's sticking with the yellow metal. 'To me, silver is the poor man's gold, and why would you want to own the second best,' Brent Cook, editor of popular newsletter Exploration Insights, told Kitco News. 'I think gold's moving higher.' After falling slightly in early trading Wednesday, gold futures moved higher on the day as traders bought the dip. June Comex gold (GOLD) - Get Report futures were last up $1.50 at $1,255.80, while May silver trades near levels last seen in June 2015 at $17.185 an ounce. Mining stocks, which have been outperforming both gold and silver prices, are also seeing substantial gains with both the (GDX) - Get Report and (GDXJ) - Get Report up nearly 73 percent and over 85 percent year-to-date, respectively. Is it still a good time to get in? According to Cook, there are still potentially profitable plays in the mining space, but investors need to be wary of companies - or so-called 'optionality plays' - that he says have seen unfounded gains so far this year.
This article is commentary by an independent contributor. At the time of publication, the author held TK positions in the stocks mentioned.