Gold and Silver Juniors, Mid-tiers and Producers Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: tyc:> who wrote (35801)	3/14/2007 8:46:07 AM
From: Mr. Aloha	Read Replies (1) of 78431

Yes -- If you think the market is pricing in country risk incorrectly, then you can make extra gains by taking on the risk others bypass as long as you end up being right. However, if you're wrong and a country confiscates your expected higher returns, you could lose everything. That's what makes a market. The other factor to keep in mind is higher perceived country risk means financing is more difficult and less favorable, often requiring excessive hedging (e.g., Apex Silver's San Cristobal in Bolivia). Miners in perceived riskier countries are also less desirable as takeover candidates. These factors can make a significant impact on expected returns. I'll stick primarily to North American miners and let others speculate on country risk elsewhere.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next