What to buy - Can you help

Discussion in 'Stocks & Derivatives' started by robertc400, Aug 29, 2019.

  1. robertc400

    robertc400 Well-Known Member Silver Stacker

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    Hi Guys,
    Looking to buy a silver stock that is already producing and doing well.
    Any suggestions?
    Might put a little into a stock that is getting close to production/speculative type.
    Any suggestions?
    Thanks for your help.
     
  2. 66rounds

    66rounds Well-Known Member Silver Stacker

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  3. Gonzo

    Gonzo Member

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    Personally my favourite is First Majestic but it's an international share (traded in NY and Toronto) so you need to be aware of the cross currency risk as well when investing. It's shot up a bit with the increase in silver price but will keep going up provided silver does.
     
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  4. Slimey

    Slimey Member

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  5. robertc400

    robertc400 Well-Known Member Silver Stacker

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    Would you guys buy it now or wait to see if it goes lower?
     
  6. 66rounds

    66rounds Well-Known Member Silver Stacker

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    Robert if you're asking my two cents, do not buy stocks now. Buy physical. You will see the stocks shoot up and then rocket back down. If the shit doesn't hit the fan when they're on the way down (I.E GFC redux) buy in as much as you can.
     
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  7. Silver Soul

    Silver Soul Well-Known Member Silver Stacker

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    If you are talking about SLR.AX. No I wouldn't buy it now. Price has just exited the cloud and there are gaps to be filled, my guess is you can buy it alot cheaper. Let the price come you, if it doesn't move on. Good luck with your dicision
     
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  8. Slimey

    Slimey Member

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    Just like I am doing with Newcrest......I am sure it will still get to the $5 mark that I swore it would....just a little more backfilling
     
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  9. Silver Soul

    Silver Soul Well-Known Member Silver Stacker

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    Anything is possible in the makets. A wise man never parts with his money fast.
     
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  10. Gonzo

    Gonzo Member

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    Hmmm First Majestic is rocking up and down sometimes not in tandem with the silver price but maybe that's profit taking. I think the answer to your question relates to each person's own feelings about how much silver or gold exposure they currently have and where they think prices may go. For me, I have enough exposure and a bit of dry powder for a pull back so my answer is a no. But if I didn't feel I had enough exposure and I was positive generally on the movement of precious metals (which I am) then yes I would recommend FM. Being an offshore stock, its much harder to time your in and out but its a well run / managed silver play, enormous potential if silver skyrockets in my opinion. DYOR of course especially considering its Mexico, there are earthquakes and hurricanes and exchange rate risk.
     
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  11. Slimey

    Slimey Member

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    The thing to keep in mind Robert is that the final performance for this silver bull run is still years away. If you buy some stock now at 20 cents, for example and it drops to 10 cents in the next 6 months, it will not matter if you have committed your capital for at least 5-6 years. The pay off in the end will be a stock price in the dollars, not cents. If a company can mine and make a profit of $10 per ounce with silver at $27 an ounce. At $100 an ounce, the profit is 8 times more. Great for a bull run but destroys share price when silver prices fall by the same amount.
    Just invest what you can afford. People don't blink to borrow $400,000 to invest in property. If you had the backbone to do the same thing with Silver Lakes Resources, for example, you will be a multi millionaire in 6 years time. Good luck getting the wife to stamp her approval on it though.
     
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  12. scott_reeve

    scott_reeve Active Member

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    Asking for financial advice from strangers on the Internet... What could go wrong?
    People were saying this 10 years ago when silver was over US$30/oz. Anyone who went long-term in silver stocks over the last 10 years would have lost most of their money.

    Even the biggest gold company on the ASX, NCM is still -4% lower than where it was at in early 2011. It's taken 8.5 years to 'rebound' back to this level. Too bad if you bought in 2011, that's a huge time to have money tied away doing nothing. Opportunity cost....

    As I was saying, over the last 10 years+, all the ASX silver-focused companies have done terribly - many went into administration. Those left, like SVL, have shareprices well lower than where they were 10 years, with their shares being continually diluted by capital raisings.

    Some of the silver producing mines, like the Twin Hills Project (Texas, Qld) have had multiple companies go bankrupt trying to make it work. From memory, there was Macmin Silver (administration), Alcyone Resources (administration), now Moreton Resources (MRV) is trying (formerly Cougar Resources which had a major under-ground coal gasification disaster in Qld). Google for all the problems with this silver project. These things are not straight forward to earn X ounces in year X for X amount of profit. More often than not that have major problems and retail shareholders get shafted.

    The stock market is about managing risk, not about buying the right stock out of 2000+ companies on the ASX. If you buy and hold long-term, particularly with mining stocks, more often than not its Russian roulette, and you'll end up with some -50% or -90% or -100% investments within a few years.

    Silver stocks 'may' do better over the longer-term at some point. Whats more important though, to be 'right' about long-term silver/gold predicitions, or to be trading stocks profitably. Many people seem to put more emphasis on ego, and end up loosing many 10s of $1,000s.
     
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  13. Silver Soul

    Silver Soul Well-Known Member Silver Stacker

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    Stock market is like a roulette wheel. Gamble what you can afford. It's that simple
     
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  14. Silver Soul

    Silver Soul Well-Known Member Silver Stacker

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    Some people just don't get it. If you buy silver or gold physically, you have control of it, and your wealth. If you have fiat the banking whores own you
     
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  15. Gonzo

    Gonzo Member

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    Diversification is the key. So I take that to mean silver AND gold... :rolleyes:
     
  16. President Trump

    President Trump Member Silver Stacker

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    Silver Lake Resources is a gold mining company. It doesn't mine silver.
     

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