Five Silver Bulls
Silver Stock Report
by Jason Hommel, March 16, 2007
1. I will be giving a presentation for the
Virtual Silver conference, ONLINE:
What can I say -- I've bought two huge loads of physical silver this last week!
I would like to bring to your attention two new silver investment advisors, that do due diligence and crunch the numbers as if their lives depended on it, and whom give good, honest advice:
2. David Zurbuchen
David has done a lot of intensive, original, research on the silver market and has made a few great stock picks recently. He told me about Hudbay Minerals at $13, a zinc miner with a P/E ratio of about 2-3 at the time. Hudbay is now trading at $20, just a few months later. I bought Canadian Zinc, Pacifica, and Metalline Mining, instead, as I felt these other juniors had more leverage with more resources and much smaller market caps. But Hudbay, a mid tier producer and now a $2.4 billion dollar major, outperformed in the recent 6 months. Way to go David!
(My investments may pay off better longer term, but we'll have to wait and see.)
3. Leonard Wall
Leonard has more recently started out, but has already attracted a small following of paying subscribers. Keep an eye on his work, and maybe think about being an early subscriber. Like David, myself, and other silver bulls I know, he also lets himself get distracted away from silver, buying select uranium stocks of all things. (I even own two uranium stocks, so "who's calling the kettle black", or something like that.)
Getting back to silver:
There's a new book out that speaks good things about silver.
4. NEW BOOK: Power of the Scepter (sequel to Eye of the Pyramid)
Here's a key excerpt:
Paul had heard that Roman soldiers were paid in silver, so he began researching this on the Net. Before long, he found his answer. Unbelievable. An average Roman soldier was paid about ten ounces of silver per year in 100 A.D., and they had to pay for their own uniform, weapons, and rations. Using an average soldier’s salary of forty thousand dollars per year today, Paul determined that silver was worth four thousand dollars per ounce in the Roman Empire.
With the discovery of the Americas and the large silver deposits, silver became more prevalent and the price was naturally reduced. But Paul was hearing that with the last fifty years of the technological revolution, above ground reserves of silver were less than gold; silver was used up in many processes such as photography and sophisticated electronic circuitry, whereas gold was hoarded, often too expensive and rare to be used in practical applications.
So if analysts said that silver was adjusting for inflation, Paul wondered, do they mean a return to thousands of dollars per ounce? And what about the value of gold? Was it trending to its historical average of sixteen times the value of silver?
Any book that talks up silver like that is worth buying. Go get it!
Axiom House is offering to contribute $2 to GATA for every book purchased by a GATA member for the rest of March. They can purchase the book from any source - Amazon, B&N.com, Borders, BooksaMillion, etc.
Here is a link that explains the details:
5. Finally, this month, I'm happy to report that my portfolio is more diversified than it has ever been. Not a single stock is over 8% of my net worth. (At times before, I had a single "penny stock" over 24%, which was quite undiversified.) Therefore, now is a particularly great time to subscribe to look at my portfolio, as the positions now are like race cars at the starting line. My average gain on my current positions is a mere 30% (some are even down!), and I usually do about 100% per year, and I expect my entire portfolio to about double from here in the next 6-18 months. (It's easier to get the sector right, than the precise timing right--but now is clearly, a particularly good time to buy.)
You can comment on this report at the "Hommel Forum" here: