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Gold/Mining/Energy : Pan American Silver Corp (PAA-T) -- Ignore unavailable to you. Want to Upgrade?

To: Elizabeth Andrews who wrote (318)	12/8/1999 11:06:00 AM
From: Claude Cormier	Read Replies (1) \| Respond to of 358

<<Mining stocks are discovery driven>> It is true for the junior exploration sector. But senior producers are price driven. Junior producers can be driven by both. <<There is no bear market in mining stocks right now. There is, however, a lack of economic discoveries and therefore no price appreciation. >> If gold prices had gone to $400 instead of $280... where do you think gold producers would be selling right now... much much higher...even without any economic discoveries. Breakwater is up several hundred percent this year..thanks to a 30% rise in zinc prices. Stillwater is up 100% in two years due to higher platinum and palladium prices. <<Claude, do you know what the real price of copper or silver is today? >> For sure they are selling at all times low....But the fact that consumption and fabrication demand continue to increase and that very few economic discoveries are made at these prices simply confirmed that we are approaching a long term reversal. <<Or are you in the school that thinks we are in a bear market and that broad brush explains the failure of so many companies that in reality have marginal prospects? >> The metals are in a bear market... or if you want... price are going lower...as you said. What was economic 3 years ago, is no longer today. So yes, the failure of many companies is due to this factor. But of course, it is not the only factor, in this industry like in others, there is such thuing as "bad management". BTW, no matter your rhetoric about the state of the mining sector, you still fail to admit when a great economic discovery is made like BAY's Alamo Dorado.