War Eagle Mining...[WEM:VSE] Message Board

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Gold/Mining/Energy : War Eagle Mining...[WEM:VSE]

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To: Benfica who wrote (120)	7/9/1998 5:18:00 AM
From: John Bigbootie	Read Replies (1) of 235

The danger in this market is that many of these exploration companies, such as WEM, may remain in extended hiatus due to the general deflationary pressure on metals (and all commodities) over the past decade. There is no reason to believe an increased demand for silver and gold will develop in the foreseeable future. On the contrary, with the contraction of East Asian economies one can expect further deflationary pressure globally and a diminished demand for industrial metals (such as La Fortuna's silver). What will happen to metal prices if Asia's economic woes begin to effect NA economies significantly is anyone's guess. There is also the matter of WEM more or less abandoning its diamond prospect in Alberta, which weighs heavily on WEM's stock. There is no longer any sort of "story" to flog, other than their Mexican standby, which has worn a little thin with anyone who has followed the stock for any length of time. The sizzle is gone from the steak, the BBQ has fallen in the pool and when the owners/directors sober up, they'll probably notice they are beginning to get hungry (so much for an attempt at a pithy analogy!). The ordinary share holder will have starved long before.

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