So are all silver stocks now priced only on the price of silver period? I look at this stock and it was 25 bucks back when the price of silver was much lower. All of them were higher with much lower silver prices.
It is a different world. see Jim Sinclair on you tube. Nixon took usa off gold standard and put us on petro dollar. Col. Putin (KGB) is brilliant and without conscience, Obama is ignorant, controlled by neocons who want war, any war. there is not enough gold in comex warehouses to cover contracts for physical gold. Putin can destroy usa economy by switching to euro dollars for oil and gas, or any money, or gold, other than dollar. he may have done this already, he at least threatened this a week or so ago. sunni saudis are mad at obama for not killing more shia iranians, and shia syrians. lybia switched to euros. iraq switched to euros, and look what we did to them. Putin has nukes. Sinclair states gold has double bottomed, and will take off in fall this fall with silver. His target; $50,000 oz. gold, collapsed stock mkt. hyper inflation. currently usa dollars must be bought to purchase oil. when euros or any other money will do dollar is finished. he also stated when IMF controls western ukrane they will want to join russia also.
Putin can destroy us by oil or nukes, his choice. he will save russian people by using oil
'77, Looking back to the "old day's" for some historical stock price guidance is where most metal bug's don't get it....period ! I'm not being insulting just stating fact's. Miner's back then actually had some realistic PE ratio's based on earning's for starter's. A lot less regulation & more low hanging PM fruit resulted in more profitability for miner's. We also did not have the big mngmnt. compensation we have now, or the financial engineering with gap & non gap reported earning's. So, as PM become more costly to mine, margin's shrink & co's look to acquisition's & borrowed money to grow & stay competitive. Which result's in more dilution & interest expense. The old day's didn't have as many ambulance chaser's & litigation to deal with either.
I haven't even touched on labor & equipment cost , insurance cost etc etc etc. Bottom line there is little to NO comparison to PM prices, it's a different world miner's have to now navigate !
The icing on the cake. We also now have unprecedented manipulation of metal market's thank's to global goverment's & WS with all the index & paper leverage games played. Realistically, the future of mining look's pretty bleak 77, without a very big % pop in the metal's good bottom line number's will be increasingly hard to come by, & even then how long do they last ? Wishcasting & co. specific optimism can't compete with the current headwind's they face. The best strategies IMHO, keep any "core" position's moderate & learn to trade the swing's....there's a world of stock's out there to invest/trade in, many with real consistent earning's, real div's & a LOT less volatility & risk ! It's fine to be pessimistic just don't let it cost you too much fiat ! GL