Silver Anyone

[RangerRick]

Anyone been watchin silver of late? I picked up a half bag of junk quarters $500 face last summer at $13.22 an oz. Today's close was 20.31 so that's good right? No, that's bad because at that price I can't afford to sell it for a nice profit as I wouldn't want to lay out another $10,000+ for another half bag. Anyone know of any deals out there?

Rick

[JBinKC]

The only metal deal that has potential arbitrage which I know of is pre 1982 pennies but you will have to wait for penny obsolescence to cash in.

The only other area that has some major mispricing lies in the smaller cap mining companies.

[RangerRick]

Small cap mining? Any suggestions?

Tks,

Rick

[JBinKC]

There are a handlful of stocks I like. Go to their website presentations if one or all catches your fancy.

Globestar Mining, Zaruma Resources, First Metals, Tamerlane Ventures, Largo Resources and Nord Resources are my favorites. Most of them with exception to one has come off of their lows.

First Metals a copper producer has been in production since November'07 and I estimate is trading at around 1.1x CFPS at current copper prices Note: FCX trades at around 8 x CFPS

Globestar, Zaruma and Nord are in the process of building mines that were fully financed and should be in production within the year. All have project IRRs >50% with conservative assumption economics at much lower prices. Nord has been the laggard. It is a brownfield project in Arizona (reopening the Johnson camp mine) that has had a delay with the state regarding air quality permitting and the stock price has suffered some but it is only a 4-5 month delay at most.

Largo is an open pit mine in the PFS but it is fairly large resource with an average high grade of 2% Vanadium ore with a platinum byproduct. (Normal vanadium mines in production have a .5%). I am sure the FS when it comes out will show a high IRR. They also have a large scale moly/tungsten mine in the exploration stage that is OK but I think they will be late to the moly party and the IRR will be iffy.

Tamerlane Ventures is in the permitting process of reopening Teck Cominco's Pine Point mine. They have 2 high grade deposits with about 2 years of reserves and about 60 other lower grade deposits. The feasibility study indicated a 1 billion NPV for the 40 mil company and the IRR of the higher grade deposits are 120% at 1.15 Zn/ .80 Pb. I ran the numbers in the first two years this company will throw off close to 200 million per annum in cash flow at current metals prices with their production targets.

What I am trying to drive at is this sector is not expensive if you can find the right projects and know what to look for.

[idealist]

Hang onto silver and definitely check pocket change. All pre-1965 dimes and quarters are 90% silver. These could be used for barter in the event of a SHTF scenario.

I see the recent surge in silver as following the recent gold surge. When gold goes down, silver seems to go down. Many of the on-line silver bullion dealers are in very low supply, but that doesn't mean that there is a general silver shortage. Many are just trying to price fix so that the price of silver doesn't go down even more.

Of course, if the fed keeps up their shennanigans, there will be an actual shortage :)