Author Topic: Silver Mining Stocks  (Read 1731 times)

Offline camo007

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Silver Mining Stocks
« on: October 10, 2009, 08:21:58 PM »
All

What are your thoughts of silver mining stocks as an additional tool for diversity?  If one has say 10% of their investments in metals already, is it time to invest in some select mining stocks?

If so what mining stocks do you recommend?

Thanks!!

Offline Gas-Mask

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Re: Silver Mining Stocks
« Reply #1 on: October 11, 2009, 12:27:26 AM »
I'm sorry but I don't have any silver mining stocks for you....  But I do have some thoughts....

If the price of gold or silver skyrockets, for example, and the workers go in strike.....  Your stock will loose money but your actual metal will go up in price.   I think Over in S.Africa they were having electrical problems a few years back.... 
I believe that paper is not transferable as much as metals are...  you can sell American silver anywhere in the world for it's silver content.

Anyhow, just a thought.

Hope you do find good fortune.

Cheers. ;D

Offline stayfrosty

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Re: Silver Mining Stocks
« Reply #2 on: October 11, 2009, 09:02:40 AM »
See my thread.

http://thesurvivalpodcast.com/forum/index.php?topic=9717.0

I have been making a killing with my mining stocks. If you believe that the prices of precious metals will go up over time, (as you should), then you simply cannot lose. Gas-Mask is correct about possibly losing value... if they go on strike... but the probablility is very slim.

My two favorite silver miners are Hecla Mining (HL) and Silver Wheaton (SLW).

I love HL because they recently cut costs and raised production and are now slated to finish the year with cash costs of less than $3 per ounce.
I love SLW because they don't own any mines. They have contracts with other companies to buy their "waste" silver that is found during copper and zinc mining. They pay around $4 an ounce.

frosty

Offline Stein

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Re: Silver Mining Stocks
« Reply #3 on: October 15, 2009, 09:59:06 AM »
HL has an earnings (loss) per share of -$0.24.  If they can't make money when gold is at $1000+, what is the long-term outlook?  In 1985, it traded at $15 and now is under $5 24 years later.  I assume you are in it for the short term?

Looking at the chart, I wouldn't exactly call it a can't loose proposition unless you are looking at a very short horizon.

http://finance.yahoo.com/echarts?s=HL#chart2:symbol=hl;range=my;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined

Offline madcap1one

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Re: Silver Mining Stocks
« Reply #4 on: October 15, 2009, 10:13:49 AM »
I hate to be pedantic about these items - but we have folks chiming in with two different types of "investment."

One is discussing trading a stock based on short term outlook.
One is discussing investing in a stock as a long term holding.

What are your purposes? What is your risk profile? Do you differentiate your baskets of holdings? Are you approaching this from a portfolio analysis perspective? Are you daytrading from your home office?

In general, mining stocks are pretty volatile - less a hedge against the future, and more susceptible to short term swings. Are these your retirement funds??? Are you just looking to hit a home run with your gambling money?

If 10% of my funds are in metals, am I then doubling up to 20% with holding equities? Do I differentiate between my commodity holdings and my equities? Physicals?

Methinks one needs a qualified investment adviser to assist in balancing the goals and choices.