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Strategies & Market Trends : Fundamental Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Brian Sullivan who wrote (1987)	7/22/2012 12:14:54 AM
From: Spekulatius	1 Recommendation Read Replies (1) \| Respond to of 4719

Re SLW - i wonder what their edge is. They pay upfront to get a physical good delivered in the future, in their case Silver metal. They carry price risk ,for the silver metal, risk that the mine they have the right to obtain the metal from, does not produce as envisioned and that the company they have the contract with goes bankrupt altogether. But essentially, it is a forward contract (with some additional risk mentioned before), so I wonder what their edge is, geological expertise ( to reduce aforementioned risk), cost of capital? I don't think it can be just the business model itself.