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Gold/Mining/Energy : Gold and Silver Mining Stocks
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To: Clappy who wrote (2853)10/24/2001 9:14:42 AM
From: IngotWeTrust  Read Replies (1) of 4051
 
Hi, Clappy! How's the family! Always good to hear from you. I do not have any silver mining stocks to suggest to you, sorry. I do not share your enthusiasm for the price of silver bouncing. However, if you want leverage, get in touch with your local commodity broker and investigate the leverage available in out of the money silver options strategies, say a straddle or a strangle.

It takes so darn long for any rally in the physical price of the metal to work through into the earnings stream of a mining equity's share price calcs, that you can grow wiskers and ear hairs while you are waiting.

Silver is LOCKED in a trading range, and learning to play the options game on the actual physical price with an educated and cooperative commodity broker, primarily from the short side it would appear to me, would offer you
the best chance to make a buck on ANY kind of move, instead of watching paint dry in silver equities.

If you have a chance to get ahold of a historical chart of Cour de A'lene of the old CDE over the period of time when silver spurted from around 4 to a short lived $11 per oz back in about 87, and then a second spurt to 7 here about 3 years ago, you might be able to visualize how limited your opportunities are in by playing the equity angle.

Just my ideas for you since I don't like silver except as an option play on the physical. You could always write puts on the equities and make a decent return that way. There is TERRIBLE physical silver production overhang on this market which is why it can't get out of its own way. As an industry normal break even cost of production for the industry is closer to $7 per oz than most in this sector will admit.

BWDIK :)
gold_tutor
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