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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: Claude Cormier who wrote (25439)	11/14/2006 7:29:28 PM
From: koan	Read Replies (2) \| Respond to of 78409

Claude: "I prefer gold only stocks because they have a premium due to the fact that only gold is "saved" while others are "used"." Koan: "That is exactly why I do not like gold as well as silver and base metals. They get used UP-lol. Not only that, but silver is consumed in such small amounts much of it is not recoverable. And it will be much easier for silver ot go to $26 than gold to go to $1,300. And now that europe does not allow lead solder more silver has to be used for that purpose. Silver will do anything monetarily that gold will do, but also act as an industrial metal. And unlike gold silver is quite inelastick i.e. a higher price does not reduce consumption much. And most silver is mined as a by product of zinc, gold and copper mining so higer price cannot stimulate supply to the degree gold can. On golds behalf I will say that over the last 25 years or so gold was one of the few metals one could make a profit mining. Just my take on things.

To: Claude Cormier who wrote (25439)	11/14/2006 7:32:15 PM
From: Mr. Aloha	Read Replies (1) \| Respond to of 78409

I don't mean the current base metals producers, whose prices would collapse if the metals collapse. I mean preproduction juniors that also have silver/gold, like MMG, which trades at a fraction of what their annual cash flow from zinc alone would be even if zinc collapsed to under $1. IMO, MMG's stock price will still be higher than it is now if zinc is under $1 when it goes to production. If base metal prices collapse, companies like MMG, RMKL, and ADA can shift focus to developing their precious metals. I prefer the non-gold only stocks because they trade at a discount to the gold only stocks, and their metals are "consumed" rather than "accumulated". LOL. I think we'll eventually run out of some base metals (http://www.sciam.com/article.cfm?articleID=000CEA15-3272-13C8-9BFE83414B7FFE87 ) but we'll never run out of gold (though gold will become much more valuable). I prefer juniors that are pricing in far lower metals prices rather than producers that are closer to fully valued. I focus on the present value of expected future cash flows, discounted for risk and time. If the global economy grows over the long term, base metal prices should stay high and gold and silver should do well, too.