New opinions on Ag stocks...not particular companies

[balou2]

So, we all know the real wealth is in PM, yet there are some major Silver companies out there that are poised to see some major growth as silver grows:

Hecla
SSRI
Silver Wheaton
SNS (OTC)
and a few more.

I'm curious how many of you have $$ invested in Silver companies and what your thoughts are as the stock market prepares to be flushed to the cafeteria.

Also, anybody own Canadian shares (i.e. OTC/Pinksheets)? What has your experience been with these? There is risk- even if they go up 100x in value, somebody has to be willing to buy from you.

thoughts?

[balou2]

Wanna bump this again, as I've gotten no replies. I'm most interested in what folks think about owning shares in the OTC stocks (i.e. Canadian juniors). Not the decision to own the, but the liability and/or ability to sell them when ready to sell.

[pkrebaum]

I only want the real deal, not cyber .... ;)

I think the mining industry has more risks than most. I'd only invest in an actual producing mine, and probably go there and see the physical operation first.

[skijake]

Ditto for me! Getting too murky for my taste.

[JesterJay]

We like REAL money.
Physical Silver.
I hear it's gonna be big!
JesterJay


Ditto for me! Getting too murky for my taste.

[pkrebaum]

Stocks are paper, and are priced in dollars. If there's hyperinflation will they increase in value as fast as the dollar decreases ??? My guess would be probably not.

Dollars are priced in terms of Silver and Gold, which is true money. If dollars hyperinflate then Gold & Silver will retain (at least, and probably out-perform) their wealth.

[chux03]

SNS???

I'd agree on the other choices...but SNS?? The property MAY hold value but I'm NOT impressed by management's actions at the Crescent Mine. At least, thus far. Their share price kinda sux too...

[chux03]

Here's a good silver prospect or two... Way, way better than SNS!! Alexco is about to decide whether to start production at Keno Hill (Hint: It will) and Impact IS producing silver, right now. And I guess that would be my advice...stick with PRODUCING or NEAR PRODUCTION SILVER COMPANIES!!


AXU - Alexco

http://seekingalpha.com/article/85714-alexco-accelerating-to-a-production-decision-at-keno-hill



Impact Silver - IPT on the Canadian Venture Exchange

http://www.impactsilver.com/s/Home.asp

[Gino]

The stock market is in a shambles at the moment. I bought some BHP a few weeks back when it fell from $46 down to $40, thinking it was good buying. Then they announced they had locked in a 90% increase in their Iron Ore contract prices. Guess where their price is now? $36! They lost 22% in a matter of weeks AFTER announcing future revenues would increase 90% for their Iron Ore trade!

All the small caps are down even further. ASX: DIO (http://finance.google.com/finance?q=ASX%3ADIO), a gold miner and exploration company for instance is down 77.5% from its 52 week high. I bought in at a buck, figuring it couldn't go any lower. Guess I was wrong, as its now down at $0.52. Likewise, ASX:LGL (http://finance.google.com/finance?q=ASX%3ALGL) is down 32% from its 52 week high and its my best performer at the moment, although I'm still making a loss on it!

I'm down 25% across the board, all I'm holding is resource stocks and they all looked like good buys.

I figure the risks are that you just don't know what kind of impact this degree of loss in Market Capitalisation will have on these companies, their Directors, or where the bottom may be. So that's it for me. Untill there is some sense displayed I figure I can not afford to gamble further in shares at this stage.

But then that's me, and I'm more than likely wrong. For all anyone knows, the whole shebang might miraculously recover next week. But then, I bought some more Silver (2 week lead time) on Friday, because I don't believe that either.

[chux03]

Here's another article on ALEXCO

http://seekingalpha.com/article/86965-alexco-interesting-emerging-silver-producer

[hiyosilver]

It is my understanding that China plans to convert some of our debt to them into western mining stocks in the near future, taking up to 5% share in several companies. If this happens, I would imagine shares would increase in value substantially.

[Silvertop]

Well, I buy physical Silver, and now, some Gold. I think these are very bad times. We are also storing food etc.... But, lately, I've started to look at some of the bigger Silver and Gold mining stocks. They're way down at the moment, and they could go lower. This may be a market crash, but in 1930, the market crashed and it's still here today. "Buy when there's blood in the streets, even if it's your own blood", was a quote from Nathan Rothchild when he created a market panic, sold and rebought back pennies on the dollar. So, I just want to be careful. I'm looking at the bigger, more capitalized stocks, the smaller one's worst case may close down and might not reopen..... I found StockKing on line stock trader; $4.95 each trade delayed live trading; $4.95 same for selling, I like this bettter than a buy that's delayed by up to 2 weeks or more. I'm not putting much in , less than $50.00 a month. The markup commission is somewhat steep, but I am just testing the waters. Major silver and gold stocks won't go away....and just like physical PM's offer a large profit potential.....CAUTION be careful. Personal possession of your PM's is still #1!:cool:

[nayoibi]

This is a little off-topic and sounds strange , even to me , but does anyone here know where I can invest in the natron market ? , does anybody know of a mining company ? Where does arm & hammer get its baking soda from ? Seriously , I would like to invest. It is a beautiful but dirty world , stock should go way up.

[oballab]

Hi,

can anyone tell me the difference and the correlated risk of owning ETFS Phisical Silver vs Phisical Silver itself.

Cheers

Oballab

[Kelly]

I'm just bumping this up.

[chux03]

Hi,

can anyone tell me the difference and the correlated risk of owning ETFS Phisical Silver vs Phisical Silver itself.

Cheers

Oballab


How about if I ask you a question in reverse?

What would you rather own...paper silver or real, physical silver that you control??

I thought so...:) "correlated risk" exists in only the paper flavored variety of silver, I believe....

[oro-plata]

Hi,

can anyone tell me the difference and the correlated risk of owning ETFS Phisical Silver vs Phisical Silver itself.

Cheers

Oballab

Oballab:
You've asked a fairly Technical Question. However, as a Broker of 17+ years I am up to the challenge. Let's address Risk Correlation.

Be sure to look at the prospectus
http://us.ishares.com/content/repository/material/prospectus/silver.pdf

BETA: Marks Risk VOLATILITY of a Stock or Mutual Fund. Beta of 1 is given to the S&P 500
1.0 Means it’s Even
1.5 Means its More Risk
.75 Means it’s Less

Standard Deviation: Total Risk in terms of Volatility of the Fund or Stock itself.

Doesn’t compare to the S & P. How wildly does it fluctuate on it’s own.
Typically measured Monthly, yearly and every 3 years.

1 Standard Deviation is 68%
2 Standard Deviations is 95%

Alpha: Compares 2 or more Funds in Performance according to S&P
+1 Means that fund is better among it’s peers
0 or Less means that fund is not performing well among peers


Sharp Ratio: Risk Free Ratio of 1 is an Automatic 5% (T Bills)
A 10% Return means one takes 2 Ratios of Risk
A 15% Return means you take 3 ratios of Risk

Essentially, all of the above come into play in both Instances (physical or ETF). HOWEVER, Physical ownership eliminates Sharp Ratio, Alpha (since it's not an actual security).

Owning Silver leaves you open to how it will perform against
The S&P 500. There have been many years where Silver in any forms "under performed" the S&P 500.

Hope this helps with Correlated Risk.

oro-plata

(http://www.goldandsilverzone.com (http://www.goldandsilverzone.com))

[sliver]

I own several Toronto and Vancouver exchange stocks that I purchased thru a Chicago old line broker and haven't had any trouble buying or selling as usually there is a market maker to take them off your hands. After you read a few hundred drill result reports of different companies you realize they are trying to drum up financial backing which right now is darn scarce even though they may be legitimate exploration companies. Best to find one that is near or beginning production or has partnered with a major. Rob McEwen got Gold Corp on it's feet and early investors made a killing. He left after selling it so he could do what he likes most, assembling exploration companies and startups. He is involved in U.S. Gold, Meridian gold, Lexam, Rubicon, all companies with great early potential. You might want to read up on companies he has an interest in.
Sliver