SSRI has the rights to several large silver properties. None are producing, therefore, the associated costs are greatly reduced while waiting for silver prices to rise. SSRI has been able to "acquire" much more silver in the ground per investor share than most others who are paying much higher prices for "producing" property and using more cash for operating. It is a true bet on higher silver. If silver never goes higher, then the "value" of owning the rights to almost 200 million ounces of measured/indicated silver and almost 250 million more ounces of inferred silver (this may be higher now) gradually becomes less and less valuable. If, however, silver were to break $6, $8, $10, etc. (which I am counting on), then SSRI would be sitting on a "gold mine" ;) They would be able to sell, option, lease, etc. much more property that eventually would produce large amounts of silver, whereas other companies of like-size would still be producing the same amount of silver (albeit at higher prices) as they were when silver was lower in price. It's the same principle as options. If it goes against you, your losses are limited, but 100%. If it goes your way, however, the leverage can be tremendous.
I remain,
SOROS
p.s. Seabridge has done the same leveraging with their properties in gold. If gold ever breaks through $400, Seabridge stock should go up about 10-fold.
p.p.s. Need motivation to buy more gold -- goldavenue.com |
