john embry is the chief investment strategist of sprott asset management, a firm that specializes in junior mining shares. his essay is entitled "sit tight - don't let gold's volatility bother you."

his comments on gold apply even more so to silver. the only point on which i would disagree with him is his characterization of ecuador's president rafael correa as discouraging the advancement of mining in his country, in particular aurelian resources. correa has often been compared to hugo chavez of venezuela, but the comparison is not valid. both are leftist, but chavez is a firebrand who hates the united states, while correa is a pragmatist who received his phd in economics from the university of illinois.

aurelian's fruta del norte deposit is the great prize every gold producer has been drooling over, and it is only the political risk of ecuador that has held them back. but aurelian has been negotiating a stability agreement with the ministry of mines, which should be signed within a few weeks. embry knows all this, but since his firm did the ipo for aurelian and is still the largest institutional shareholder, he may be getting impatient to get the deal done.

sorry for drfting off topic, but aru is a stock that bears watching as i doubt it will last the rest of the year before being taken over. it was just added to the tsx 500, it has held up this past week when every other mining stock was slaughtered, and once the government deal is completed, there is no telling what this stock will do.

http://www.sprott.com/pdf/investorsd...