@ all
Erstmal danke Euch allen hier fuer die Anteilnahme
Ich muss ich mich nun ein wenig ablenken und lege Euch den neuen Hommel Report rein.
Silver Stock Report
November 30th.
by Jason Hommel
What is the most important news in the gold and silver world today?
http://rs6.net/tn.jsp?t=vevhxq…ttp%3A%2F%2Fstorytoday.tv is a new internet news site run by my older brother, Terbo Ted. See the latest Nov. 29th broadcast for the explosive and revealing story below.
See also the following in the Newsroom:
http://rs6.net/tn.jsp?t=vevhxq…tv%2Fnews%2Fframeset.html
The 5th story down:
Russian Central Bank to buy up to 877 tonnes of gold
The following was read on the news:
We have another Story today about Russia, this one about the Russian Central bank, in a story today from silver stock report DOT com
Russian President Vladimir Putin last week advocated that the Russian Central bank buy more gold. Recently, the Russian Central bank has announced that they plan to increase gold holdings from the current 500 tonnes to 1000 tonnes. However, today, the Russian Central Bank released information about the 500 tonnes they supposedly currently have. Apparently, up to 377 tonnes has been loaned out, and is described as $6 billion worth of "term deposits".
This goes to show several things. First, most of the world's central banks lie about the amount of gold they have, and include "leased out gold" as the same as "gold in the vaults". Second, this validates the Gold Anti-Trust Action Committee's claim that of the 33,000 tonnes of gold claimed to be owned by the world's central banks, up to 1/2 or more has been leased out, at a rate of about 1500 tonnes per year, which has greatly suppressed the gold price. Third, the gold price stands to vastly increase, as the Russians are likely to stop leasing out gold, and have now stated that they will buy much more gold than they produce annually, which is a mere 183 tonnes per year.
I created and submitted this story from the following news link, put out by Chris Powell from GATA.ORG and James Turk of goldmoney.com
http://rs6.net/tn.jsp?t=vevhxq…F20051128%2F42241821.html
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If you have not heard of GATA and their research that shows that most of the gold held by the central banks has been sold out and leased into the market, then you don't really know the story today about gold, and why the gold price is headed to $2000/oz. or more. Imagine what will happen to the gold price as 1500 tonnes of gold per year is no longer sold, but is rather bought! The world's gold mines only produce about 2500 tonnes of gold per year!
To learn more about what GATA knows, I strongly suggest that you get a free two week subscription to lemetropolecafe.com --I read it almost daily.
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Here is a hot new novel that is being taking the gold world by storm: Eye of the Pyramid. It has a focus on finance & gold. It's a mystery / thriller that Midwest Book Reviews describes as "an enthralling and adventurous tale." You can read all about the novel at the link below.
http://rs6.net/tn.jsp?t=vevhxq…yeofthePyramid%2Fmain.htm
But there's a lot more. If you purchase this novel from Amazon.com on December 1, you get this amazing list of free bonuses!
http://rs6.net/tn.jsp?t=vevhxq…%2Foffers%2Fbonuslist.htm
Only good for purchases on December 1.
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But even the gold world is mystified by silver. About 95% of the gold ever mined in human history still exists in above ground, refined form. In contrast, about 95% of the silver ever mined has been consumed by electronics and jewelry. (I say jewelry consumes silver because silver jewelry has an extremely high cost of manufacture as compared to the metal component. A silver ring or silver necklace, for example, costs about $50/oz. to $100/oz., and thus, the silver is not recoverable nor recyclable at a profit to the silver jewelry buyer until we exceed those prices. In contrast, much gold jewelry in Asia has a very low manufacturing cost, about 5-10% of the item's cost is the manufacture, and thus, most gold jewelry in Asia is similar to any other gold bullion product like coins and bars.)
So, here's my ample proof of the silver shortage, that so few in the world know about.
SilverStockReport.com: Silver Users Fear Silver Shortage
http://rs6.net/tn.jsp?t=vevhxq…7%2Fclth528.html%3F.v%3D8
My story, above, is backed up by 11 links. Read it, if you have not done so already.
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So, gold is going to skyrocket in price, due to the central banking change from selling to buying.
Silver is going to skyrocket in price much more than gold, due to the silver shortage.
And selected silver stocks, that provide ample leverage to the price of silver are set to rise faster in price than silver! And available shares in these silver stocks are rarest of all.
A billionaire may have serious trouble buying physical silver today, but a millionaire would have trouble buying even a small portion of the best silver stocks without pushing up the price.
So, now we get to the silver stocks, my favorite silver stocks right now.
After my last report, on Nov. 21, many readers asked me about Sterling Mining (SRLM.PK).
Sterling Mining has about just under 20 million shares, fully diluted, with a share price today that closed at $2.55. On Monday, on volume of about 450,000 shares, Sterling Mining rose in price about 40% up from about $2.00 to $2.80! Why such action? Who knows, but probably because Sterling Mining has up to 550 million oz. of silver in the ground, under lease under control in various projects around the world.
At $2.55/share, that's a market cap of $51 million dollars, and gives you control of over 10 oz. of silver for every dollar's worth of stock. Another way to calculate that is the following:
$51 million dollars / 550 million oz. = $.09 per oz. --cost of 1 oz. of silver in the ground to the stockholder who buys stock at $2.55/share.
$8.25/oz. / $.09 = 88.97. In other words, you get 89 oz. of silver in the ground for $8.25 worth (one oz. of silver's worth) of stock. Thus, Sterling Mining, at $2.55/share, gives leverage of up to 89 to one to the silver price. That's probably better than buying options on silver futures contracts.
Sterling Mining owns a lease on the famous Sunshine Mine in Idaho, and Sterling is producing silver from the Baroness Tailings Project in Mexico.
People's concerns are "Why is the stock down, why is the stock so cheap? Should I buy or sell, or is there a problem?"
There are two possible problems that I know about, neither of which is serious, in my opinion, and may rather be described as an explanation for why the stock is cheap, or also be described as an opportunity...
The first possible problem (or explanation, or opportunity) that the stock has right now is downward price momentum. The stock started out at about $.25/share about 3-4 years ago, went as high as $14/share about a year and a half ago, and is now at $2.00 - $2.50/share. Selling creates more selling, just as buying attracts more buying. Why? Because so few people are care about fundamentals, and so many people are momentum traders and trend traders. Perhaps a bottom is in, perhaps not, but the price right now is cheap. And the price, at $2.50/share is still ten times higher than it was at $.25/share, well before Sterling Mining acquired the Sunshine mine, which it did at about $.80/share.
The second possible problem (or explanation, or opportunity) is that Sterling Mining is likely the target of a hostile take over attempt. It appears as if there are people who wish to buy a controlling interest in Sterling Mining, and are talking down the share price in an attempt to buy it up, more cheaply--as was stated by the company in a press release on Nov. 4:
http://rs6.net/tn.jsp?t=vevhxq…51104005185.html%3F.v%3D2
At the Silver Summit, I personally spoke with several of the people involved who had a "grudge" against Sterling Mining, and who were suing Ray Demotte personally. It seems as if there is no substance to the lawsuit. The gist of their complaint seemed to me to be that that they thought that they could manage the Sunshine Mine better than company president, Ray Demotte, and that they thought the mine should be in production by now.
However, according to my thinking and my research, it would be rather foolish raise too much money, and spend too much money, to get into production too early, to sell silver at such low prices as we have today. As it stands no major silver mining company is making any substantial money by mining silver, not HL, not CDE, not PAAS. So, producing silver at a loss makes no sense.
According to my way of thinking, silver must outperform nearly every other commodity, including oil, due to the silver shortage. Oil has risen from $10 to $70/barrel. (and back down a bit). Silver has not yet risen ten fold from the bottom of about $4.15/oz., from 2003, and it has just doubled by this week, over 2 years later. But I fully expect silver to rise to well over $100/oz. Therefore, spending money on producing silver now is the exact wrong strategy at the present time, in my opinion.
I think the best strategy is to buy up silver stocks. That's what I'm doing, of course. And what I'm doing, the companies should be doing. Therefore, I think the best strategy for a company to follow is to buy up silver properties. Ray Demotte has followed this strategy, by buying up many of the very best silver properties around, and I think Ray is doing the right thing.
My biggest complaint is that they are producing silver, profitably, in Mexico, at the Baroness Tailings Project, and taking the profits home and using them to refurbish the Sunshine Mine. I would rather that Ray Demotte not mine silver at a small profit, and focus instead on acquiring more silver properties. And then, much later, after the major rise in silver prices, mine all the silver possible at a major profit.
But then again, sometimes silver mining companies get a share price boost if they are producing silver. So maybe Ray is doing the right thing.
(I own Sterling Mining, and the company has not paid me to write about them.)
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By the way, I promoted Sterling Mining SRLM (without giving the name) last week. It was the third company, about which, I wrote, as follows:
Third company: Market Cap $40 million, U.S. Cash on hand: $<$1 million. Has a lease on many silver properties: Total oz. about 550 million oz. of silver, worth, at $8.13/oz., about $4.5 billion. Owns a famous historic silver mine needing refurbishment. I own this one too. Just look at my portfolio at silverstockreport.com.
Readers who subscribed to get the name, and who acted to buy, could have made nearly 40% last week. The other three companies are remain great deals--especially the second company, as zinc prices made new highs last week to $.77/lb, up from new highs of $.74/lb last week.
First company: Market Cap: $34 million, U.S. Cash on hand: $<$1 million. Has a lease: The value of the reserves, the minerals in the ground: $45 billion, U.S. Has a positive Feasibility Study showing that about 85% of the value of the ore will be mined at a profit! That's 85% of $45 billion, or $38 billion! The company needs to raise about $400 million to unlock that $38,000 million in profit! To get the name of this company, sign up to the look at my portfolio at silverstockreport.com.
Second company: Market Cap $37 million, U.S. Cash on hand: $14 million, U.S. Buildings & Infrastructure: $100 million, U.S. Value of the minerals in the ground: $3.7 billion, U.S. Value of the rock: $336/ton! Value of each metal, at today's prices, compared to the others: 53% zinc, 27% lead, 14% silver, 6% copper. Zinc prices hit new highs at $.74/lb, and zinc inventories are dropping. The company needs to raise about $20 million to start mining, and has 5/6 permits needed. I'd be happy to tell you the name of this company, it's in my portfolio at silverstockreport.com.
...
Fourth company: Market Cap: 42 million, U.S. Cash on hand: $<$1 million. Owns an exploration property that may be the largest copper porphyry in the world, located in Montana, U.S.A. Has several of the largest mining companies in the world currently very interested. Has no interest in selling out too soon, and plans to sell at a high premium in a few years after doing a bit more exploration. This stock is my largest holding. If you really did your research, and were a regular reader of my full silver stock report, you'd probably be able to figure out the names of these 4 companies.
