Alien Metals Share Price (UFO)

Ewt nice no one is saying its logical that its affected by slv price but to me when slv volume is high we see more volume in ufo if I can be bothered tonight I may look at the correlation . I bet it you filtered the slv data to look at days it moved upper quartile or 1SD volume then matched those dates with UFO you would get higher than 0.4 . I think on days when slv moving ufo affected but on average 0.4

I agree with Smiller, I didn't used to think the share price had any correlation to the price of silver, however we have to bear in mind that silver is a market that follows euphoric price action, and UFO does have exposure to not only silver prospects but also a JORC resource on a silver project. We saw that on the 1st Feb for the silver squeeze, and if silver goes crazy again, I would expect a similar reaction - hopefully next time more sustained.

Also after plotting the last years price action for UFO vs SLV (not perfect, but an easy data set to extract), I received a correlation coefficient of marginally under 0.4 on daily data, and just over 0.4 on weekly data; this signifies a weak-to-moderate correlation between the price of silver and the UFO share price. Of course, there are many variables at play, that I can't be bothered to formulate into a model to isolate the interaction of silver and the UFO share price, but the numbers point to some level of correlation IMO.

"As you’ve said in the past, it’ll be 3-5 years at least before there’s any quantity of silver, so short term price changes [of silver] are completely irrelevant."

If you were to substitute that last word ARE with the phrase SHOULD BE, I'd agree with you, but it is somewhat illogical to assume that everybody else behaves logically.

Fluctuations in the silver price rapidly move the price of silver miners as they have a big effect on their monthly profits. Much as UFO aren't actually a silver miner with any profits to affect, many think of UFO in the same terms regardless. So whilst we might be partially buffered from smaller moves in silver's price our SP can still get nudged about by a lot of action in the silver market, albeit in a slightly disjointed and vague causal manner.

If the price of silver is not linked then why did this jump to 1.6 on the day of silver squeeze?

ForrestGump. A risky investment but if you research the recent history the risk/ reward is swinging to a favourable buy in my opinion.
And….as you say….a great company with good moral values.
I would like to make it clear I am not recommending it,just saying it like it is.