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Mighty Moose
11th November 2008, 11:04
I've been watching this forum since the end of August & enjoy reading the intelligent insight posted by some of its members- I even enjoy some of the not-so-intelligent bantering.

Anyhow, I couldn't resist posting any longer, as it's kind of intimidating to do so, as I'm afraid I might say something stupid & show my lack of knowledge as compared to some folks, here.

So here it is, my first big comment (in my mind). I noticed that oil has dropped below $60 U.S., this morning. Indeed, it my be headed to $50 like Lindsey Williams predicts.

WOULD ANY ONE LIKE TO COMMENT ON HOW THIS WILL AFFECT SILVER. To me, it seems it would put downward pressure on PM's, temporarily. This could be better in the end when oil, IMO, heads for the moon. Im done now. MM

prahudka
11th November 2008, 11:12
I've been watching this forum since the end of August & enjoy reading the intelligent insight posted by some of its members- I even enjoy some of the not-so-intelligent bantering.

Anyhow, I couldn't resist posting any longer, as it's kind of intimidating to do so, as I'm afraid I might say something stupid & show my lack of knowledge as compared to some folks, here.

So here it is, my first big comment (in my mind). I noticed that oil has dropped below $60 U.S., this morning. Indeed, it my be headed to $50 like Lindsey Williams predicts.

WOULD ANY ONE LIKE TO COMMENT ON HOW THIS WILL AFFECT SILVER. To me, it seems it would put downward pressure on PM's, temporarily. This could be better in the end when oil, IMO, heads for the moon. Im done now. MM

If I could give you a good answer, I would be rich already. :confused:;)

main1event
11th November 2008, 11:18
Yes, it will put downward pressure on commodities as a whole. What we all have to keep in mind is this, at the current price of commodities it is not worth mining. Very few mines are profitable at this level and they are losing a great deal of money.

The second problem is many mines need financing to operate.

Eventually we are going to end up with shortages of everything because the market is not functioning properly.

Mighty Moose
11th November 2008, 11:30
Yes, it will put downward pressure on commodities as a whole. What we all have to keep in mind is this, at the current price of commodities it is not worth mining. Very few mines are profitable at this level and they are losing a great deal of money.

The second problem is many mines need financing to operate.

Eventually we are going to end up with shortages of everything because the market is not functioning properly.
Hi, main1event. I've seen from your past comments that you have some knowledge in this area. Do you see Endeavour Silver making it through unscathed, or at least surviving? It seems to be outperforming some other companies at this time.

main1event
11th November 2008, 11:39
Its impossible to say. Endeavor from everything I have studied is in great shape. They have no debt, have some small cash reserves and seem to have a pretty sharp CEO.

However, that does not mean anything. They could shut down the mine if prices of commodities stay this low. They could eat through their very thin cash reserves. The stock could trade for cash value which is .23 a share or so. I've seen it before.

There is also the behind the scenes scenarios, like bets on the futures market, hedges, derivatives and secondaries. These are all unknowns and could easily help in bankrupting the company down the road. When your cash strapped you do desperate things.

Just because stocks are cheap does not mean they can not become cheaper.

That being said I would not hold any stocks at this time. We are seeing 90% down days in the market. That means that the selling pressure is tremendous and we could see selling right through to the first of the year.

If you have endeavor here, I would sell into this rally.

Mighty Moose
11th November 2008, 11:46
Thank you so much for the reply. I really appreciate that advice!