<Look, it's hard enuff as it is to convince people that gold is actually money, do you think it's easier with silver?>
You are so right. It ain't easier.
< I’m not playing silver as an industrial metal, I’m playing it because the historic ratio of 16:1 (to gold) is now 66:1, the potential for profit is bigger than it is for gold.>
Although silver is not consider a monetary metal anymore, I agree with what you say. There is only 10-15 times more silver in the crust of the earth tahn there is silver. With the many physical characteristics of silver, it certainly has a bright future. I don't think it will get back to 16:1, but 30-35:1 make sense.
> So, do I need to take a chance on the speculative when I > can go for the easier play?
Well all depends what you think is speculative. I feel much more comfortable owning BAY than PAA at this point. PAA is loosing money and is forced to continuously dilute its stocks. If silver stays in the current range for another year or two, PAAS will head below $3 possibly much lower.
>I'm a believer, no doubt about it, and Pan-American is my >choice because it's a proven miner with a taste for M&A.
No doubt. PAAS is an excellnt miner with great management. But they are losing money and must sell shares on the market to survive. At least for now.
> Anyway, I just know from experience that gold will move > first, then silver.
Well...could be that silver will move first this time around.
>As for zinc? I'll wait till the auto industry stops >cutting back production before going that route. This is >nothing more than 1998 revisited.
How about 1981-82 or 1974 revisited. Possibly even 1930. I think it will be worst than most people think.
Claude |
