The most interesting quote in the press release is “At March 31, 2011, the Company had working capital of $37,688,517 (compared to $24,218,741 at March 31, 2010), including cash on hand of $35,456,632 (compared to $24,251,678 at March 31, 2010).

The company has gained plenty of working capital without suffering much net loss. This is welcomed news for many, as silver prices remain volatile. Precious metals – most notably silver and gold, are a hot point right now with investors, as many on Wall Street are looking for immediate cash flow, instead of future cash build up.

Read the Entire MAG Silver Press Release Now.

Gold and Silver Have a Very Close Relationship

While these two precious metals have never really been tied to one another in any “official” capacity, they are indeed tied to each other by certain market actors. As most of us know, silver dropped by 33% while gold was virtually unchanged, having lost only 7% from top to bottom. The gold to silver ratio now stands at a reasonable 40:1.

Financialized Silver is Still Very Important

Among the several key elements that lead up to the silver correction was the build-up in investment interests in financialized silver. In other words, silver that is bought and sold in intangible form. Local coin shop prices are still set by Comex and by the major institutional investors who bully prices for most financial products.

Silver Miners Do Matter

For the most part, Wall Street is still a crazy game of “who is smarter than whom.” Wall Street is currently looking for cash flow, instead of protection for wealth. This is due to the fact that our economy is still basically in the toilet. In the silver correction, traders were swapping bullion (supposed future delivery of bullion) for shares in silver miners, which produce cash, not silver. Miners equal future cash flow for Wall Street for silver production, not silver.

These three things tell us – if looked at closely, that silver is still a very strong investment. Investors just need to be patient and ride out the market’s irrationality if they are able to. The long-term — after all markets find efficiency and normalcy, means significantly higher values for Silver Bars.

This IPO, lower interest rates from the Fed, and some people thinking the price of most precious metals is way too high, like gold and silver, makes for a tough market on silver. In one week the price of silver went down nearly 4 dollars a troy ounce. You knew it had to happen sooner or later, the price was just escalating to rapidly.

So what does that mean for your investment strategy? Should you get out too? Well if you bought at $21, I might have to suggest sticking it out, (although don’t take my investment advice, I beg you). But with the recent sell off, and inflation not being helped by lower interest rates (at least I think that’s how it goes) you may see the price of silver climb again.

But don’t bet the house on it, only as much as you can loose.