I own an equal amount of shares in both Pan-American Silver and Silver Standard. I�m not looking to sell either one until silver is at least 20 an ounce.
Since the 1st quarter of 2001:
Silver Standard has lost a little over 9 million dollars.
Pan-American Silver has lost 47.6 million dollars. 27.2 million of that was on a write down on the Quiruvilca mine.
Pan American has lost over 46 million dollars on 28.3m ounces of silver produced during that time, that amounts to a loss of 1.62 per ounce.
The complain I hear about Silver Standard is it�s not a producer, but why should it produce at a loss? I think they have the right thing. Sure they�ve been losing money, but they would have lost a lot more if they were producing at these prices. Both of these companies are winners, I also own shares in WTZ, it wouldn�t surprise me if they end up with nearly one billion ounces of silver resources. Since I bought I�m up 164% on PAAS, 404% on Silver Standard and up an average of 275% with Western Silver.
Where will these three companies be with silver at 20? PAAS, SSRI and WTZ are strong buys..
No. I never said that silver is expensive at 7. What I said was that PAAS isn't selling it at "cheap prices." In other words, they aren't hedging the price of silver, as has been charged here. They've also been reducing costs considerably.
I don't blindly worship any company. But, at the same time, I disagree with the use of what are essentially political criteria as the bases for determining the value of an investment. (i.e. If mgt doesn't agree with Ted Butler and his gnomes, if they don't have 20% of their cash in silver, or withhold 20% of sales, et.al. then it is, by definition, a bad company and the stock must be sold.)