Re: bellweather
in response to
by
posted on
Feb 12, 2008 11:37AM
Golden Minerals is a junior silver producer with a strong growth profile, listed on both the NYSE Amex and TSX.
It's impossible to know when sentiment will turn but my experience over many years investing is that the lowest value asset class, in this case silver/gold shares, always attracts the money and this will be no different. Everytime I've seen this in my investing career it has been a huge profit maker for me and when viewed in hindsight many say why didn't I load up on this story or that they were so cheap and available.
In the case of ECU the road map to a billion ounces isn't some dream but clearly defined and laid out in a model developed in conjunction with a world class engineering firm in Micon. A more independent credible source simply doesn't exist. My point with this is that this environment or condition won't last even though it has been extremely frustrating for everyone, myself included. Don't doubt for a second that we aren't on the potential buy lists of many Baystreet institutions because we are as ECU simply can't be ignored in the precious metal space any longer. The key is what activates the buying of precious metals stocks on Baystreet. One normal note worthy timing indicator is low volume and retail guys selling, like now, with buyers on strike.
BTW, I don't look for the small precious metal producers to lead the next major advances by the junior class as the majors don't care about this in the least, that was retail stuff in early 2006. I look for the majors and mid-sized companies to start M&A activity when their stock prices allow them to use the stock as currency again and this could be very soon. I also expect competition from the sovereign wealth funds for the same assets. I also see Mexico as one of the safest places to invest but keep in mind that many deposits in Mexico are smallish and will not be on radar screens for takeover as no one wants small except to make a little cash flow to discover big. I must say that if you have been aggressively looking for big any longer than 3 years on a property package and haven't found it yet, dump that stock and find big potential somewhere else. If you can't boast having over 200 million ounces right now you will not likely be on anybodies radar screen and this should help many decide where they should be vested.
The best stories building the biggest resources, the fastest, in the most undervalued asset class, in the safest locales, is simply a recipe to make money, the question being when and no one can answer that and everyone needs to follow their own guidance on that as always.