Zman, That rocket ride is what I am hoping for with the miners. You put some out there that I have never heard of before ...excellent! Thank you. I will add those to my research list.
Alot of people read this blog but don't actually post. It is very heartening to think how many people you all may be helping with your suggestions & tips on the miners. TY!
Thank you Ginger. It's easy to help people when they are passionate about the topic at hand like yourself!
I started up a thread on some of my gold miners. There's not a lot there yet, but please stop by. We are having an open house today with cookies and lemonade for all!
Here's an *up and coming* silver junior with exceedingly high ore grade that might not as yet have been mentioned in this forum.
CMC Metals Ltd CMCXF
13.8 million mkt cap, 52.6 million shares
Price: .262/sh (up .025 today)
Excerpt from their website:
Just wanted to add my thoughts to this thread. All the thoughts here by Eric and others are good information and put all together make a nice mix. Let me share my thought process to buying the miners I own. I spent a great deal of time watching the movers such as EXK, SLW & GPL. I found that the percentage moves, when the market is in high gear, with these stocks and some others were good for trading in and out of depending on their setup on the charts.
After booking profits from the sale on these I would look for penny stocks that I liked such as Cream (CRMFX), Rye Patch (RPMGF) and NWM Mining (NWMMF) and would take part of my profits and buy them to hold. I am not presently looking for stocks such as Cream to bring me profits. They are in my back pocket from PART of the profits I made on the other trades. They are free so to speak. I don't carry them in my main watch list and don't pay much attention to them after purchase because they are a long term hold. My friend Peter Degraaf often talks about 10 to 40 cent miners running to $400 back in the last PM's bull market in the 1970's. He says it's going to happen again and I can only agree.
I also agree with Eric that it is not about the number of shares you own in any particular stock it is the possible percentage of the move you achieve from investment dollars you put in whether it's $1000 or $10,000.
Yesterday First Majestic (AG) closed at 16.65 and for $1000 you could have bought 60 shares. AG is up 10% from yesterday as I write. Day Profit = $100
Yesterday Andina Minerals (ADMNF) closed at 1.20 and for $1000 you could have bought 833 shares. ADMNF is up 3.32% from yesterday as I write. Day Profit = $33.20
Same $1000 but different results no matter how many shares based upon percentages.
Thanks rock collector!
Did you see the news out of Levon today? First NI 43-101 resource calc out of the company. I haven't fully crunched the numbers yet, but so far the Cordero Project seems to be doing exactly what they hoped it would do. Big numbers. Should have a PEA* out by end of third quarter.
*Preliminary Economic Assessment
I basically employ Chin's strategy. I used to buy the pennies and roll into intermediates as the pennies multiply easier. I now buy options (or warrants) and sell some, exercise some, most efficient way I have found of accumulating shares of the more expensive miners. My 10k plan involves accumulating at least 10k shares of quality penny stocks for the back pocket. I don't believe you will find too many quality stocks under $50 at the end of this. Since I dare not trade miners I care little for the day to day prices. For trading, I do stock options and futures options sparingly long dated 3month ++++. I have been laying on options for the last week or so from my feb mar game plan which predicted a low at the qe clusterf%$#@. But I have the blessing of a profitable business which allows me $ks per month flexibility.
Ginger check dec-jan svm options $12-$16 tasty cheap,they're on a buy back program.
I have the following:
Avalon Rare Metals Inc (AVL)
Brigus Gold Corp (BRD)
GOLD PRED CORP (GPD.TO)(GPRXF.PK)
Goldcorp Inc. (GG)
Lynas Corporation Limited (LYSCF.PK)
Pacific North West Capital Corp. (PAWEF.OB)
SILVER PREDATOR CORP (SPD.TO)(SVROF.PK)
U.S. SILVER CORP (USSIF.PK)
Victoria Gold Corp (VIT.V)
Golden Minerals Company (AUMN)
I picked up the SNDXF today and plan to sell some of the above to buy more!! SANDSTORM GOLD LTD. (SNDXF.PK)
I like to search for explorers and early stage developers that I can hold for a longer period, occasionally trading part (or all) to take profits. Junior explorers (IMHO) tend to be vulnerable due to low cash reserves, and are constantly struggling to raise new working capital for drilling, surveys and so on. This is doubly true in periods of financial tightness, where raising new capital can be a challenge. In the last few years, if an explorer did not have a source of funds, the firm was stuck in the mud. So one of the first things that has to be met for me to get interested is funds in the bank.
Most people would make high quality management their top criterion, and it is important, but I cut some slack on that if the there is a significant cash reserve and working capital to get the company through at least the following 18 - 24 months.
Did a little number crunching on Levon. I'm not quite so enthusiastic as I was earlier in the day. The grades seem awfully low. Not sure now whether there's really something big there, or whether I should sell on the next rally.
I sure miss Minera Andes (MAI.TO) and Rubicon Minerals (RMX.TO) on that list
Is McEwen still involved with Rubicon? I thought he was gone from there.
Yes, I believe he sold all of his shares to develop something else, though I can't recall at this time. But the point is, for all intents and purposes, it was still a successfully created project by McEwen.
Apparently I am good at starting a thread and then forgetting to come check it.
I apologize. This place is so big and when I get caught up in another forum or just on the main thread...I forget to come back or even forget where I posted my thread! I need to employ Eric's strategy of checking the history of my threads so that I won't forget any of them. Yikes.
At any rate... thank you so much for all responses and for all suggestions of miners thrown out there. Kumanari, I won't have the $$ to buy in to most of my options for another couple of weeks so I'm just hoping that I get to jump in on the UXG & SVM options at a good buy. But whichever way that plays out I will be glad for what I can do and thanks in part to your input.
Chin Music.. I especially hate that I missed you on this thread as I was wondering if you'd found your way to TF's new site! ..So good to see you here. Love your investing strategy. Makes so much sense. I feel much more educated just having read your words. ...I hope you are around and we can talk more about all of this and other stuff of preparing.
All of your collective help/suggestions humble me because none of you are selfish. You could keep all info to yourself for yourself and yet you choose to help me and others. Can't tell you how much that means as I (really struggle) to get my prepared life under control over here. I haven't always made the best choices. Sure am trying to change that these days.
Thanks so much rock collector, GoodDoctor, Eric, Zwipped, infinite_easing, LeeHo & all! ......If you care to keep this thread going..great.. I will keep on collecting your great advice. ...If not.. I'm stalking you all on all the other threads that you post about these miners and more!
Ginger if you are inclined,take a look at the guest post on the SGS blog, he has some interesting observations on this.
Ginger if you are inclined,take a look at the guest post on the SGS blog, he has some interesting observations on this.
The link is https://silvergoldsilver.blogspot.com/2011/06/guest-post-silver-mining-and-falling.html#comments for everyone's convenience. This article by SRSrocco was a good read; thanks for directing us to it maravich. It's an interesting take that I haven't heard before.
To summarize in a line, the author makes a case that low grade resources / reserves would be uneconomical in expensive / peak oil scenarios and this would make a very bullish case for silver, but not necessarily the silver miners.
Uhhm a lot of the miners are going to nat gas powered mining equipment for underground room and pillar plays like RVM has going, for a number of reasons, not the least of which is the cost of fuel. The fumes from nat gas equipment have about 1/10th of the pollution of diesel powered as well so not as dangerous. As well many employ electric conveyor systems , and again these costs do not really have a lot to do with Peak OIL.
RVM concentrates do have to be trucked or transported by rail to the refining location, so there is the shipping costs. But this is not a big factor is the overall costs.
These gold/silver miners are beat down, and trading way low considering their profits at current metal prices. It looks, and feels a lot like May '09. I was able to buy a lot of good quality miners at that time. Most were from the International Speculator list offered by Casey Research. Stocks like FR.TO, SLW.TO, AXR.TO, CSI.TO to name a few. All of these are up big, most are up close to 200%, and one beauty, First Majestic is up 650% (was up 1000% before the smash down). Back in '09, Gold and silver were starting from a much lower price, and the fact that many gold/silver stocks are going to be paying dividends...... my oh my, I love when history rhymes. The best part is that when the physical prices skyrocket, due to a comex event, these stocks will not go down with the paper, but will go multiples higher than physical. Ever wonder what a leveraged rocket launch would look like? You will..... hope you have your tickets!
What he fails to note is that it won't matter if there is no supply of silver. He also applies this mainly to silver. But in the grand scheme of things this will apply to all commodities that need energy. While I understand that more concentrated deposits will be mined first under this argument, it won't matter if silver is $5000 an oz and diesel is $25 a gallon if they can move the earth quick enough. To me this is a bit too much of chicken little. And concerning the market and the May 1st crash this is not a very timely article. How about after if breaches the $50 barrier? Sheesh.
It's not that I am unaware of this argument but this happens only if we run out of energy. We have not crossed that threshold yet and we will likely not in our lifetimes. Will it get more expensive? Yes. Right now there is more oil than silver. China and India's demand and the emerging markets will have a say in this however over the next 20 years. I understand that energy will become scarcer over the next 20 years. And I bet we have $5000 silver before $25 diesel.
Dr. Stehpen Leeb's last couple of books focus on this same argument for alternative energies. Saying that water/resource/energy inputs will eventually eclipse what you are getting out of the alternative energy in terms of energy. The two books are: The Coming Economic Collapse and Game Over. These books are very good and will give you a hard edge in understanding what is unfolding before our eyes. You will note that some of his predictions have come true in the books since they have been written. But the take away here is that SRSrocco is correct but it won't be as bad as he states until oil runs out. The main focus of these books is all commodities.
I feel these are must read books and will make you fully understand the implications of China and India in the mix as well. They are quick reads in paperback format and you can probably get them for close to $20 for both. One other quick note Leeb maintains that we will be using a plethora of alternative energies, as well as carbon based energy and nuclear all at the same time. China is indeed aware of this and is planning accordingly. And the news is everywhere for this. At this time we do not have a complete single bullet game changer for alternative/renewable energy. And we might not ever. I think a key game changer would be if we could somehow apply Moore's Law to solar power efficiency. That might help. But then you still would have a silver shortage.
And news flash on oil in the US. We have so much natural gas (yes I have seen GasLand - watch it!) that it can last 100 years if we can figure a safer way to get it out of the ground that doesn't pollute the water table or water aquifers. Also if you do your DD on the Bakken Shale, up in Alaska and underneath the Rockies, you will know that these three spots hold 2 trillion barrels of oil! Yes, you read that right. 500 billion at the Bakken and up in Alaska, and 1 trillion underneath the Rockies. I found info on the Bakken and Rockies at the USGS and heard about the Alaska find (said to be bigger than Saudi Arabia oil fields) from Lindsey Williams. You can find plenty of Lindsey Williams interviews on the web and You Tube!