Investing In Silver Companies?

[bmulc5]

Hi everybody,
I'm new to these forums and would like to start off by asking a question about silver mining shares.
I recently watched a Youtube video called, "Expose Cinema - Bill Still - 8th of April 2011. The link to the video is found below:

http://www.youtube.com/watch?v=zSL2OO-Ru...ce=message

In the video, Bill quickly briefed over how it might be a good idea to invest in Silver Mining Companies.
I wanted to know if this is truely a good idea besides building a stockpile of physical Silver or is the risk too great of an investment? - :-)

[EL34]

Many top guys say no and some say yes.

The mining companies are not doing that well in the stock market right now, but you can make money if you know what you are doing.

Some say that they are a real buy at these low prices, but we have not seen the bottom yet.

Most the guys I follow like Peter Grandich, who has followed mining stocks for 30 years, do invest in mining stocks.
Go here to read his news letter
http://www.grandich.com/

Then you get some highly respected guys that say stay out of the stock market all together right now

So you will have to make that decision yourself.

[bmulc5]

@EL34,
Thank you for your detailed reply.
According to your response, it seems it's a 50/50 chance unless I know a bit about the Mining Companies and their Stocks. I'll have to look into it and see what I come up with.
Thanks again - :-)

[EL34]

(05-07-2012 08:15 AM)bmulc5 Wrote:  @EL34,
Thank you for your detailed reply.
According to your response, it seems it's a 50/50 chance unless I know a bit about the Mining Companies and their Stocks. I'll have to look into it and see what I come up with.
Thanks again - :-)

Make sure you check out that Grandich site
He knows what he is talking about concerning mining stocks.
He also has a page with Buy-Sell-Hold recomendations

[bmulc5]

(05-07-2012 09:47 AM)EL34 Wrote:  

(05-07-2012 08:15 AM)bmulc5 Wrote:  @EL34,
Thank you for your detailed reply.
According to your response, it seems it's a 50/50 chance unless I know a bit about the Mining Companies and their Stocks. I'll have to look into it and see what I come up with.
Thanks again - :-)

Make sure you check out that Grandich site
He knows what he is talking about concerning mining stocks.
He also has a page with Buy-Sell-Hold recomendations

I already have and I'm impressed with what information is on this website, thankyou for the link. But putting it into action is another thing. I'll have to do my research before making any decisions or purchases.
"Don't dive into the pool without knowing how to swim".
Thanks again - :-)

[parkster500]

Stack Silver!!!

[bmulc5]

(05-07-2012 10:17 AM)parkster500 Wrote:  Stack Silver!!!

Thanks for your reply.
I plan to stack Silver, I have been brought out of the bubble and shown the light in regards to commodities (Mainly Silver).
I am just trying to see if there are other oppotunities (besides stacking) to excel financially. I feel joining the BJF forums will show me many new things that benefit me and other members.
Thanks parkster500 - :-)

[EL34]

A couple weeks ago I sold all the mutual funds in my SEP retirement account. That account only allowed money market and stock market investments and so you can't stack with that type of account.

Just to play around with some of the cash, I bought 5 mining stocks. I had maybe $40,000 total invested
The next day I was up like $1500
The day after that I was down $1000

News that Argentina might nationalize one of the mining companies sent that stock south.

Eventually I found out I could roll over my SEP account into a self directed IRA. With that type of account, you can buy gold, silver, real estate, etc

And so I had to liquidate all my positions to be able to roll this account over.

I waited till the market ran back up to the 13,300 level and sold all my mining stocks for about a $1400 profit. The commisions ate up 25% of that.

My overall take was that mining stocks are fine if you have the nerve to ride out all the bad news and wait till gold and silver start to go up again. The mining stocks are rock bottom right now, but they keep going down. Every time the market burps, they take a beating.

I may play around with some of them again when I see the trend reverse.

[Viper_99]

Too risky for me - I'm totally out of the markets and will never go back! For now it is cash and physical silver!

[Mr.Akamkk]

I am heavily vested in the Jr. Mining sector which most people will tell you I am completely out of my mind, and that's ok I already knew that.

Here's the logic to my madness. I am in for 6 figures. Been in for 2 years doubled my investment and then the whole shooting match went south. I keep buying and buying and buying. I own over 300,000 shares and keep adding to my positions every chance I get. Back in the 80's when the last gold and silver run hit, this sector went from $.10/ share to $300.00 / share some being much more, some being much less. The math is very simple to figure out. The only criteria that I follow is I only invest in the Canadian Market because it is heavily regulated and government controlled. You can't get away with the s#*t here they pull in the US. I have two subscriptions to a guy out of Colorado that specializes in this sector and I keep buying and will continue to keep buying until the market turns. So far he has been correct and I have done very well. My wife says it's legalized gambling, she might be right.

When the SHTF and everything comes unwound, if these stocks start jumping the way they did in the 80's then the party starts almost immediately.

There is nothing that will change your mood faster then opening your stock account and seeing 3 or 4 stocks listing a 3500% gain. Pure adrenalin.

[EL34]

Yeah, I will be on board for that party

Waiting for my new self directed IRA to get set up so I can play with the money in that account.
There's currently about 175K of cash

A bunch is going into physs gold and silver, but some is going towards juniors for sure

[Mr.Akamkk]

(05-07-2012 03:08 PM)EL34 Wrote:  Yeah, I will be on board for that party

Waiting for my new self directed IRA to get set up so I can play with the money in that account.
There's currently about 175K of cash

A bunch is going into physs gold and silver, but some is going towards juniors for sure

What adviser are you following?

[II DALTON II]

I'm buying Miners this week once my W-8BEN form clears.

The way I see it is they are a good side investment to physical metals. I built my core stack, and will add to it from time to time on dips. I need something on the side though that I can flip for cash to pay debts, pay for holidays, nights out on the town, and to roll over into other assets I think are a good deal.

Miners also have the benefit of having the potential to be profitable even when the metals are down.

In the end, it all comes down to your risk tolerance, your financial plan and whether you want to diversify or not.

[EL34]

Quote:What adviser are you following?

I have two subscriptions to a guy out of Colorado that specializes in this sector

I don't have one currently.
My retirement account was always invested in mutual funds.

I will be taking control of my retirenment account with my new self directed IRA. (soon to be in place)
PM me and let me know who the adviser you mentioned is if possible, thanks

[bmulc5]

Thanks guys for your new and follow-up posts.
You have given me new ideas and opportunities to think about.
It does look like it comes down to risk, knowledge and your information sources. It's all very interesting and will be taken into consideration for my future plans once I gain enough experience with it all. Can't wait!!
Thanks everyone - :-)