Question if any one knows . Since I started Stacking in 2011 - seeing silver go up I still see a way to go . In Dec I Experimented with a silver mining company and kept a watch on others I only invested $142.00 - naturally I invested more in the tangible . Now here it is 5 months later & I am up 98% $139 on the mining company I also noticed all the companies I had on watch are up 100% easy . My stack is over all just income averaging so the $2 per oz spike no big thing yet . The question ? Is the growth I have seen with silver mines something that would continue to grow if silver spot climbs could 400% & 500% growth happen or do you think it's just a correction value that max's out regardless of silver spot I ask cause if i understood this better I would purchase some others companies even though there up 100% and 150% . Future growth ?? I also invested in Solar Technologies & Blackberry That solar is at a loss of 24% Blackberry no change between the two was a $100 investment , so no concern .
If people are interested in investing for the future, I would urge you to go look at lithium. It is not prone to the commodity controls seen in Gold and Silver and therefore not exposed to the banksters and investment houses who are able to manipulate prices on a daily basis as is so obvious with precious metals. DYOR, but be aware that a paradigm shift is on the way in energy, Saudi Arabia just laid off over 50,000 foreign workers due to reduced income on oil. They also just announced they will invest 2 trillion in US Dollars into renewabels.
Investing in gold/silver junior and mid tier producing companies is a natural form of leverage of the gold price so long as you do your research and pick the winners. I've got a stack of juniors sitting on 100-200% gains whilst the gold spot price is up 20% from it's bottom. There's an elevated risk obviously if the gold price turns down, but so long as you are bullish on gold over the long-term and you can handled the short-term volatility then there's huge gains to be had.
Take a simple example where silver is $10 and the all-in costs for a mining company is $9 per ounce, so they make $1 profit on every ounce they produce. If the price of silver goes to $11 the company now makes $2 profit per ounce. So even though silver has gone up 10%, profit has gone up 100% which should be reflected in the share price. Hence miners are said to be "leveraged" to the price of silver (or gold, lithium, or whatever they produce). The next $1 rise of silver produces only a 50% rise in profit, and every additional price rise after than produces a diminishing %age rise in profit. And of course the same principle operates in reverse - when metal prices fall, the miners get smashed.
a mining company has to sell silver dore to upstream refiner well below spot. If everyone sold from the miner to refiner to mint to the dealer, the whole industry would collapse.
