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To: Jim Willie CB who wrote (5937)	9/9/2002 11:59:28 AM
From: Wharf Rat	Read Replies (1) \| Respond to of 89467

Silver a better bet than gold? wsrn.com DJ. INTERVIEW: Silver Could Outshine Gold In 2003 - Analyst Sunday, September 8, 2002 09:50:04 PM - FWN Select TOKYO, Sep 09, 2002 (ODJ Select via COMTEX) -- By Jim Hawe Of DOW JONES NEWSWIRES (Dow Jones)--Despite being seen as something of an ugly duckling among precious metals, silver could be ready for a breakout in 2003, and even outshine gold, said one Australian investment advisor. Tony Locantro, a Perth-based advisor and author of a book on speculative investing, has placed silver at the top of his list of investment options most likely to get caught up in a big wave of speculative buying. "Silver looks compelling for several reasons, first of which is the supply and demand situation," said Locantro. "Silver production has been at a deficit to demand for 11 straight years. And this demand could increase further now that the U.S. government has signed a bill to purchase silver off the market to cover coinage programs after virtually exhausting its stockpile of the metal," Locantro said. Like most market watchers, Locantro has seen the pendulum of investment sentiment swing decisively away from paper assets and toward hard assets like precious metals after the bursting of the tech bubble and in the wake of the Enron Corp. (ENRNQ) debacle. While gold may still be the "sentimental favorite" among investors looking to get into precious metals, Locantro sees much more upside potential for silver. Locantro points out that despite the recent spike over US$5.00, silver is still trading near historical lows - and after working for eight years as a police officer before joining the financial world, Locantro feels that he knows a steal when he sees one. "The current weakness in the price of silver could very well be, with the benefit of hindsight, an excellent entry point." Spot silver was trading at US$4.52 an ounce early Monday in Asia, unchanged from late Friday in New York. Locantro went on to say that silver's low price could make it the metal of choice when investors look for a cheaper alternative to gold. "Let's say the price of gold doubles. That would put it at around US$640 an ounce, which is going to be too expensive for many people. But if the price of silver were to double, it would still be trading under US$10." And Locantro sees a good chance for silver to double its price some time next year. "In 2003 I would hope to see a price acceleration toward US$10.00 an ounce and beyond as the shift into hard assets gathers momentum." Locantro says that a big rally in silver will likely be sparked by a rise in the gold price, but adds that silver will eventually "disengage" itself from gold and even outperform the yellow metal in percentage terms. For 2003 Locantro expects gold will test its 1996 high of around US$418/oz. Spot gold opened Monday morning in Sydney at US$320, up from US$318.05 late Friday in New York. Portfolio Recommendations Locantro said that he has been urging all of his clients to add a silver lining to their portfolios. Specifically, he recommends a 30% exposure to silver, half physical and half in silver mining company stocks. He also recommends a 30% exposure to gold divided into physical, mining company stocks and exploration company stocks, followed by 15% in energy and other precious metals and 25% in cash. "I tend to be pretty biased toward resources," admitted Locantro. Locantro said that he has personally been buying shares in Australian-based exploration companies such as Herald Resources Limited (A.HRD), Independence Gold NL (A.IGO), and Exco Resources NL (A.EXS). Locantro said that he is a firm believer in the adage that the best investments are the ones that the majority is still unaware of. And that is why he is so keen on silver as this "poor man's gold" has been so overlooked by the mainstream investors. "You sometimes see stories in the paper about a rise in gold prices with pictures of shining bullion bars right on the front page, but this is never the case with silver," said Locantro. "Once silver makes it to the front page, I think that is when I will start selling." -By Jim Hawe, Dow Jones Newswires; 813-5255-2950; jim.hawe@dowjones.com Sundance