A Whiskey & Gunpowder Special Report: Silver

[webmaster]

Subject:A Whiskey & Gunpowder Special Report: Silver
By: Whiskey & Gunpowder

Overview: Above ground inventories are dwindling, and demand continues to outstrip supply at a pace of 200 million ounces a year. Investors like Warren Buffet realize this and are taking advantage right now. But the best profits are not in holding bullion itself. Looking to add stocks of silver miners to your portfolio is the cheapest way to gain the greatest chance for skyrocket profits.

Link: http://news.silverseek.com/SilverSeek/1202832060.php

[goldminer]

I believe a good balanced portfolio will include several base metal and precious metals mining companies...half of which hedge and the other half which don't hedge their metals.

But I also believe that a shortage of above ground Ag and rising silver prices won't signficantly increase production for a number of years because:

(1) Most silver is recovered as a bi-product of mining other metals, so an above ground shortage and > Ag prices won't increase the amount of silver that these companies produce.
(2) Many, many rich Ag deposits located near the surface which historically have been mined at minimum cost are long gone...mined out over past years.
(3) Geologists report the deeper into the earth that a company goes mining a silver deposit, the poorer the deposit generally becomes.
(4) Mining costs increase substantially as an operation moves deeper into the earth.
(5) Research and development of new silver deposits is VERY expensive.
(6) Any increases in mining development and production will by report, lag
shortages significant Ag price increases by 5-7 years.