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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: habitrail who wrote (52397)	5/30/2002 2:34:27 PM
From: Jim Willie CB	Read Replies (3) \| Respond to of 65232

views of silver from the jackass mine crumbwatcher I own some silver proof coins they have a beta of about 3 versus silver metal price they also rise about 5-10% per month (if you can handle that) but they contain a bid-ask spread that disturbs if silver rises 10-fold, as I expect it will by 2005, then these mint state coins will rise 25-30 fold e.g. a $1000 coin will be worth $25-30k barring silver mine nationalization seizures, silver stocks look great also they have a beta of 2-3 versus metal e.g. PAAS, SIL, SSRI and the half gold/ half silvers HL, AEM forget CDE since so debt ridden, they are dragging arse hedging is an interesting issue, glad you asked remember that miners sell forward only if they are producing the hedging provides huge cash flow which enables increased mining operations but silver mines are largely on hold silver prices are still below most mine production costs so the little mining breeds almost no forward selling Apex Silver is prepping for massive production in 18 months PanAmerican has some silver operations I think it best to invest in silver miners whose production is on hold otherwise they are depleting reserves, selling as these artificially low Fed-sponsored corrupt prices no, silvers dont hedge but bear in mind that some like HL, AEM have gold operations simultaneously in their mines so they are at least tempted to forward sell on the gold side perhaps, which might lead to forward selling on the silver side also I dont know exactly whether HL or AEM hedge I hate the word "hedge" these forward sellers are not hedging a bit they are putting on massive potentially destructive gambles in the futures market with naked shorts very far out in time like 3-4 years out they wont deliver soon enough if prices rise instead, their companies will be decimated and go bankrupt Barrick will be going bankrupt before 2003 I will make a bet with anyone on that claim ANYONE and give 2:1 odds in your favor / jim