Silver Stocks Comparative Valuations
   Silver Stocks--Comparative Valuations 
Report # 55
by Jason Hommel
silverstockreport.com
Friday, Feb 18th, 2005

A day's wage used to be a silver dime, a silver quarter, or maybe a silver dollar.  2000 years ago in Rome, a silver denarius was a day's wage, and that coin was about the size of a silver dime, too.  Even as recent as 100 years ago, a silver dime was a day's wage.   A silver dime today costs about 50 cents, at $7.20/oz. for silver.  If the world returns to using silver as money, that silver dime might be worth about $150 or more--which is what a day's wage is in U.S. dollars today.  Thus, a $5000 investment in silver bullion today may be worth about $1.5 million, or more, in the future.

However, silver is more rare today that it has ever been.  For over 50 years, silver has been consumed in electronics, because silver is the greatest conductor of electricity known to man.  We still consume more than we produce.  About 900 million oz. of silver are consumed annually, and just under 600 million ounces mined annually.  Thus, there is is seven times as much refined gold as silver...  Buy real silver, it is scarce, real wealth, and cannot go to zero value, and I expect silver may rise in price nearly 300 fold, or more due to the insatiable industrial demand and the scarcity.  With that point of view, I began researching and investing in silver stocks, and this report is the fruit of my efforts, and the collective wisdom of the feedback I get from my readers.

 This week's report lists the market capitalizations for 77 silver stocks.  There are 27 silver stocks that list reserves, resources (and exploration potential) which I calculate by using my "ounce in the ground" formula.  There are 50 explorers.  There are about 30 additional "silver" stocks with incomplete information.  This report goes out now to over 13,350 investors each week.  Additions & Changes from last week are in bold. 

Quick links to other areas in this report (Index of this report): 
[Summary list of Silver stocks]
[My Methodology]
[Weekly Commentary]
[Subscribe to the "look at my portfolio". ($34/mo.)]
[Subscribe to my Private Placement notice list (FREE)]
[Subscribe to this Weekly Silver Stock Report (FREE)]
[My Conference Schedule]
[General Commentary on Silver]
[WHERE and HOW to BUY SILVER BULLION]
[The money chart]
[Disclaimers, Warnings, and Advice]
[Company profiles]
[Company profiles with the most resources, and least cost]
[Profiles of Explorers]
[Links]
[19 Silver Stocks I own]
[Archive of about 40 of my past essays]
[Archive of past Silver Stock Reports]
Kitco reports silver at $7.37/oz. as of Friday, 3PM West Coast, US, which was used to calculate the following figures. The CAN $ / US $ conversion factor is .8121.  I will use .81 for ease.   At today's prices, it takes 58 oz. of silver to buy 1 oz. of gold.
How to read the table below:  It starts on the left with:
The Stock Symbol that works at Yahoo! Finance (Company name) / The number that follows the company name, below, represents the company's resources, divided by the market cap as denominated in silver; thus, it is the number of silver oz. "in ground" that you gain title to when you trade away one ounce of silver to buy 1 oz. of silver's worth of stock.  The number is just one potential valuation method, in this case, an expression of leverage that silver stocks can give you, the higher the number, the better. / Next, I list the valuation price change since last week (and stock dilution, and resource changes, if any) as "up" or "down" or "even".  / Finally, there are additional comments (EXPT is "exploration potential")

Company names in bold have summaries below with updated information since the last report.  Click on the name to see the summary below.

This first list are the companies with information about reserves/resources/exploration potential.  The list is ordered/ranked based on the resource picture.  The most expensive (with the fewest silver resources given their market cap) are listed first.  Many of the bigger market cap companies, such as CDE, ABX, HL, BHP, Penoles, etc., are not listed here, because they are simply too expensive, based on their market capitalizations and resource ratio.
  1. FSR.TO FSLVF.PK (FIRST SILVER)   4.3 down  --producer, (not profitable '03 3rd q.) unhedged, owns bullion
  2. GRS GAM.TO (GAMMON LAKE)            4.4 down --producer, owns 26% of Mexgold
  3. WTZ WTC.TO (WESTERN SILVER)        4.6 up  -- (14 EXPT) large mine development cost. copper & zinc bonus
  4. MFN MFL.TO (MINEFINDERS)              5.0 up  --significant gold bonus, $35 mil cash on hand.
  5. * TM.V TUMIF.OB (TUMI RSCS)            5.0 up -- (28 EXPT) recent bonanza grade silver discovery
  6. PAAS (PAN AMERICAN SILVER)                5.4 up  --large market cap, cash rich, producer.
  7. FAN.TO FRLLF.PK (FARALLON RSCS)    7.5 up --(13 EXPT) low grades, silver 1/3; also gold & zinc bonus.
  8. ORM.V OREXF.PK (OREMEX RES)          8 down  (33 EXPT) --Discovery! 20 oz. of silver/T over 292 feet!
  9. * CFTN.PK (CLIFTON MINING)                  9.4 down -- (223 EXPT) (order their colloidal silver now online 10% off)
  10. IAU.TO ITDXF.PK (INTREPID MINRLS)     8.7 up --exploring in Mexico & Argentina.
  11. SSRI SSO.V (SILVER STANDARD)             9.9 even --large company, 20+ properties, owns silver bullion
  12. CZN.TO CZICF.PK (CDN ZINC)               10.2 up  --large zinc bonus, high grades, low start up costs, great EXPT
  13. * PLE.V (PLEXMAR RES INC)                      10.7 down --just acquired options on 2 new projects
  14. FR.V FMJRF.PK (FIRST MAJESTIC)           13 up (44 EXPT) --producer in Mexico.
  15. * IMR.V IMXPF.OB (IMA EXPL)             13 down --(48 EXPT) in Argentina 83 oz. of silver/T over 35 meters!
  16. * YZC.V (Yukon Zinc)                               13.8 way up  --huge zinc bonus 60% zinc, 25% silver
  17. SHSH.PK (SHOSHONE SILVER)                   14.7 down  --leased properties; need payments; in Coeur d'Alene
  18. * SVL.V STVZF.PK (SILVERCREST)           15.3 up  --Silver in Mexico, 11.5 oz. of silver/T over 313 feet
  19. RDV.TO RDFVF.PK (REDCORP VEN)        19.5 down --60% gold bonus
  20. GGC.V GGCRF.PK (GENCO RECS)             20.3 even --producer in Mex.  Plans to expand and acquire
  21. CHD.V CHDSF.PK (CHARIOT RSCS)          22.4 down  --explorer, with inferred resources
  22. * SRLM.PK (STERLING MINING)                  22.3 up --(48 EXPT) acquired the Sunshine in Coeur d'Alene
  23. HDA.V HUSIF.PK (HULDRA SILVER)           23.4 up   --very tiny, zinc bonus, low start up costs.
  24. * CSG.TO CSGLF.PK (CAPSTONE GOLD)    25.7 down (95 EXPT) (In Mexico, resources are historical)
  25. * ABI.V ABMBF.PK  (ABCOURT MINES)     25.4 up --large zinc bonus, + existing infrastructure
  26. * MGN (MINES MGMT)                                 28.5 up  --60% copper bonus (low grades), start up cost ~ $250 mil
  27. * ASM.V ASGMF.PK (AVINO SILVER)        30.3 down --(19 if deal falls thru) to own 100% of the Avino mine
* = I own shares

Next list: Exploration companies or producers with limited information on resources.  This list is in order (roughly) by market cap, the highest market cap companies are listed first. 
  1. MGR.V MGRSF.PK (MEXGOLD RSCS)       -- bonanza grade discovery on Jan 13th, 2004
  2. CDY CDU.V (CARDERO RSCS)  --silver and iron explorer
  3. AOT.V ASOLF.PK (ASCOT RSCS) -- owns percentage of Cardero, CDU.V
  4. * OTMN.PK (O.T. MINING)  very large exploration potential; recently discovered large copper intercept
  5. SPM.V SMNPF.PK (SCORPIO MINING)
  6. TVI.TO TVIPF.PK (TVI PACIFIC) --A PRODUCER of a dore silver bar 96% silver, 4% gold
  7. * MMGG.OB (METALLINE MINE) --zinc/silver (historic high grade silver) (low cost revolutionary oxide zinc process)
  8. MCAJF.PK (MACMIN LTD) --In Australia
  9. ECU.V ECUXF.PK (ECU SILVER MINI)  --A PRODUCER 50% gold bonus
This next list has silver exploration companies with market caps under about $30 million
(Market cap = total number of shares fully diluted, times the share price.  It's what the company is "worth" in the market place, given the stock price, and is one of the important numbers I calculate each week in these lists.)
  1. MAI.V MNEAF.OB (MINERA ANDES)  (gold bonus)
  2. * EDR.V EDRGF.PK (ENDEAVOUR SILVER)  A PRODUCER in Mexico
  3. CAUCF.PK (CALEDON RES)
  4. * CBE.V CBEFF.PK (CABO MINING) --Historic Silver and Cobalt district
  5. SDR.V SDURF.PK (STROUD RSCS) (partners with Amerix) --in Mexico
  6. * APM.V  (Amerix Precious Metals Corp) (partners with Stroud) --in Mexico
  7. QTA.V QURAF.PK (QUATERRA RES)
  8. SSV.V (SOUTHERN SILVER EXPLORATION)
  9. PXI.V  PNXPF.PK (Planet Exploration Inc.)
This next list has silver exploration companies with market caps under about $15 million

FOR MOST OF THE REMAINDER OF THE EXPLORERS BELOW, I HAVE NOT YET CHECKED TO UPDATE THE INFO SINCE OCTOBER, 2004 (UPDATED COMPANIES ARE HIGHLIGHTED, AS USUAL.)
  1. NJMC.OB (NEW JERSEY MIN)
  2. EPZ.V ESPZF.PK (ESPERANZA SILVR)
  3. MAG.V MSLRF.PK (MAG SILVER)
  4. EXN.V EXLLF.PK (EXCELLON RSCS)
  5. SRY.V (STINGRAY RSCS)
  6. SML.V SMLZF.PK (STEALTH MNRLS)
  7. * KRE.V KREKF.PK (KENRICH ESKAY)  --Near Eskay Creek
  8. BCM.V BCEKF.PK (BEAR CRK MINING)
  9. *KG.V KDKGF.PK (KLONDIKE GOLD)
  10. APE.V (Apogee Minerals Ltd.)
  11. * CMA.V CRMXF.OB (CREAM MINERALS) --Low grade, large "exploration potential"
  12. CHMN.PK (CHESTER MINING)
  13. MMG.V MMEEF.PK (MCMILLAN GOLD)
  14. GPR.V GPRLF.PK (GREAT PANTHER)
This next list has silver exploration companies with market caps under about $7 million dollars:
  1. ROK.V ROCAF.PK (ROCA MINES INC)
  2. EGD.V EGDMF.PK (ENERGOLD MINING)
  3. GNG.V  GGTHF.PK (GOLDEN GOLIATH)  --Historic silver district in Mexico
  4. LEG.V LEGCF.PK (LATEEGRA RSCS)
  5. TBLC.PK (TIMBERLINE RES)
  6. TUO.V TEUTF.PK (TEUTON RES)
This next list has silver exploration companies with market caps under about $5 million dollars: (The real "penny stocks" are those with the smallest market caps, not the lowest share price!)
  1. * PDO.V (PORTAL DE ORO RS)  --New Discoveries in Argentina
  2. * AUN.V AUNFF.PK (AURCANA CORP)
  3. ASLM.PK (AMER SILVER MINI)  -- In Cour d'Alene
  4. PCM.V PAOCF.PK (PAC COMOX RES)
  5. BGS.V BLDGF.PK (BALLAD GLD SLVR)
  6. * GRG.V (GOLDEN ARROW RESC)          IMR.V spin-off. 35 properties
  7. MTB.V (Mountain Boy Minerals Ltd)
  8. BBR.V BBRRF.PK (BRETT RES)
  9. CLZ.V (Canasil Resources Inc)
  10. IPT.V IMPJF.PK (Impact Minerals) -
  11. LSM.V LASCF.PK (Langis Silver & Cobalt Mining Co Ltd)
  12. CBP.V CPBMF.PK (CONS PAC BAY MIN)
* = I own shares. 
There are expanded profiles on each company, way below.  But before I get to that, let me discuss my methodology, and the problems with it.

See the number above, listed after each company in the first list?  That number represents the number of silver ounces in the ground that you get when you buy an ounce of silver's worth of stock.  The number treats all reported ounces in the ground as equal, however, they are NOT EQUAL.  Some ounces in the ground are more certain and others are more speculative.  Some are higher grades, some are lower grades.  Some have been well drilled, others have less drill results.  They range from most certain to least certain such as: "proven & probable reserves," and then, "measured, indicated, or inferred resources."   A reserve has a feasibility study produced for it.  A resource, does not.

Here's the math on how I calculate that one number.  First, I get a market cap by multiplying the fully diluted shares (which bullishly assumes all options and warrants will be exercised and converted into outstanding shares) by the share price in U.S. dollars.  Next, I divide that by the silver price, so the market cap is denominated in terms of silver ounces.  Then, I divide the ounces in the ground by the market cap as denominated in silver.  This produces the single number of how many ounces of silver in the ground you are buying when you give up one ounce of silver in your hand, for shares of stock, instead.  This way, you can not only compare silver stocks to each other, you can compare them to silver directly.  This also helps people in other nations, using other currencies, to value these companies.

This valuation does not include zinc, or copper, or lead, but it does include gold at a 1:10 ratio of gold:silver.  At goldsheetlinks.com, they add 100% of proven & probable reserves, but only 70% of measured & indicated resources, and only 50% of inferred resources.  I don't do that.  I count them as all the same.

I believe that the two most important numbers that a silver mining company can report are the resources in the ground, and the number of their fully diluted shares. Of course, there is much more to a mining company than that, but without those numbers, it is extremely difficult to even start an evaluation.  This report highlights those key numbers, where possible.  If you think those numbers are also important, please email the executives of the mining companies you own, and ask them to make sure their numbers are clearly published at their websites.

Problems with my methodology:  My methodology assumes that the more ounces in the ground, is, in theory, best, given that I expect much higher silver prices.  However, unless the price of silver really moves much higher, my methodology may not be the best one.  If silver does really move up very high in value as compared to today, then I expect my methodology to be one of the best predictors of rising stock values, because more ounces in the ground mean more leverage to rising silver prices.  However, the companies with greater leverage to the upside usually also tend to have greater leverage to the downside, and thus, tend to be more volitile.  

Other factors to consider that the single number produced by my methodology does not:  A resource calculation number does not tell you the entire picture about a company.  The resource calculation number is designed as a starting place for further research.  Other very important considerations are as follows:  How much existing mining infrastructure is in place?  The more the better, so think of it as a "bonus".  How much cash does the comapany have on hand, and what is their burn rate?  What is the management's attitude towards money, silver, hedging, debt, and dilution?  This is why I list "additional comments" in the company profiles, below.

I don't consider grade to be too important (although I list it when I can), because I consider the cost to mine to be the more important consideration.  The "cost to mine" is determined in a feasibility study, which is the last thing produced before trying to raise money for final construction of a mine.  And usually, they cannot even count silver as a resource unless it is at least somewhat feasable to mine at today's prices for silver.  And this is why I count all the ounces as the same.  If a low grade ore can be mined more cheaply, and if a higher grade ore costs more to extract, and if it has to be somewhat economically feasible even at these low silver prices to be counted, it balances out quite nicely.

My methodology is the natural result of my study of the silver market and my religious views.  To read about my religious views, see my other web site, bibleprophesy.org There are two essays near the top of the page that explain why I believe the entire world will return to using gold and silver as money again before the end times.  See Ezekiel 38.  Also, see my essay: Biblical Guidelines for Managing your Money

See my June 18, 2004 article: I'm insanely bullish on silver.

To quickly "tab" down to the company you are interested in, note the symbol. Then hit "control-F" to "FIND" the symbol below.
___________
If I use a word you don't understand and is not listed in the dictionary at www.m-w.com you can look up the meaning at http://investorwords.com/
WEEKLY COMMENTARY (All new in this section):  

At the end of January, I attended the National Publicity Summit in New York.  I paid $5000 just to attend.  As a result, I paid a fee to land an hour long radio interview that went out on national radio.  See http://www.stutaylor.com

To hear my hour long radio show on the internet, click here:
http://www.businesstalkradio.net/weekend_host/Archives/st.shtml
My show date is 2-12.  Or try clicking here:
http://archives.warpradio.com/btr/EquityStrategies/021222.MP3

Unfortunately, the end of the show was cut off.  I was saying that I find charts of the gold price useless as predictors of where the gold price will go, because charts contain no information about the fundamentals of how much paper money they have printed up. 
-------------------------------

New companies that were added to this list this week:
SSV.V (SOUTHERN SILVER EXPLORATION)
APE.V (Apogee Minerals Ltd.)

-------------------
Copper and Zinc both continue to make new high prices this Friday.  Copper is at $1.51/lb., and zinc is at $.61/lb.  Many of the silver producers also produce copper and zinc (silver is typically the by-produce of gold, copper, zinc, and lead mining), and many of the explorers also have copper and/or zinc. 

Copper/Silver explorers to look at:
O.T. Mining --just drilled into a new Porphyry Copper mineralized zone, extending over 1200 feet.
Mines Management
 Chariot Resources
Capstone Gold
 Minera Andes

Zinc/Silver explorers to look at:
Western Silver (also some copper)
Canadian Zinc
Metalline Mining
Yukon Zinc
Abcourt Mines
Huldra Silver

-------------------
I received the following letter from Bernard at libertydollar.org, which provided an occasion for some important commentary on the nature of silver vs. paper money.
Jason:

Please reconsider such a statement:  "I believe paper money is fraudulent."
To: "I believe government paper money is fraudulent."  I have been in the
industry 30 YEARS... Just ask David Morgan or 100,000 other people or the
independent auditor who physically audits the warehouse at Sunshine Minting
in Coeur d'Alene.... Check out:
http://www.libertydollar.org/html/audits.asp
The Liberty Dollar is the first currency in 5,000 years of monetary history
that has been independently audited since day one.  To say anything
differently is wrong and makes you appear not to be the well informed.  Your
support, or basis for lack of, would be appreciated, please.

Bernard von NotHaus
Monetary Architect
Bernard von NotHaus at libertydollar.org

So, I, Jason, responded to Bernard, with the following letter:
Ah, so you believe that privately issued paper money is not fraud.
Did you know that paper dollars in the U.S. used to be privately issued, too?  Perhaps they were never independently audited... but they are similar, yes?
What do you think is the first step to get people away from silver and gold?  Might it be to get them to trust that paper is "just as good"?
You certainly must know the difference between paper and silver, that one is a promise to pay, and that the other is payment in full?
Do you believe that promises are money, or do you believe that real goods are money?  See, I have a belief about that subject.  Some men might not start spending money, or counting on it, until after it arrives.  Because to count on money arriving, before it arrives, is folly.  Have you ever received a promise from a man, and he broke it?  How many business have you been in?  I tell you, that a promise is not the same as payment in full, and honest accounting practices distinguish the difference.  Why don't you?
Do you even know what the Bible has to say about making promises?  That is says "swear not" and "make no oath"?
James 5:12 But most of all, my brothers and sisters, never take an oath, by heaven or earth or anything else. Just say a simple yes or no, so that you will not sin and be condemned for it.

Do you know the risks of having others be responsible for your wealth?  Do you know the risks of heaping up wealth all in one place?  Do you know of the Bible's admonition to not store up your wealth where thieves break in and steal?
Matthew 6:19   Lay not up for yourselves treasures upon earth, where moth and rust doth corrupt, and where thieves break through and steal:
20   But lay up for yourselves treasures in heaven, where neither moth nor rust doth corrupt, and where thieves do not break through nor steal:

Which do you think is a safer place for wealth:  A huge pile in one place with a few guards, or having the wealth distributed among hundreds of thousands of gun owners who all are responsible enough to both put it into safes and keep the location of those safes hidden?
Do you know the benefits to society of having people own and protect, and defend their own wealth?
Please, after you can honestly answer my questions above, re-consider your opinion.  And then tell me, whether you think I'm uninformed.

By the way, I've known about the Liberty Dollar for years.  And I hate the Liberty Dollar, far more than I hate bullion dealers who charge way, way, way too much for the silver they are selling.  I'd actually prefer to own a $50 silver coin sold from the TV guide or the Franklin Mint than own a Liberty Paper dollar, and I hate even paying $1.50 over spot for the U.S. Eagle.

You, sir, are engaged in selling silver bullion that is worth about $7, for $10.  I do not believe that is an honest business practice, and would certainly not want to associate myself with such a business activity.

To sell a $7 item, for $10, without delivering the item sure sounds like fraud to me, even if the owner of the paper has a right to ask for the $7 item at any time.

If you were selling an ounce of silver at the going rate of $7/oz., but changed the scales so that the ounce appeared to weigh 42.8% more, so that you could sell it for $10, do you think God would be happy with you, in light of what he says here:
Deuteronomy 25:13   Thou shalt not have in thy bag divers weights, a great and a small.
14   Thou shalt not have in thine house divers measures, a great and a small.
15   But thou shalt have a perfect and just weight, a perfect and just measure shalt thou have: that thy days may be lengthened in the land which the LORD thy God giveth thee.

Proverbs 20:10  Divers weights, and divers measures, both of them are alike abomination to the LORD.

Furthermore, the nature of the business of the liberty dollar, is to incur liabilities.  In other words, you owe silver to the holders of your paper.  But did you know that the Bible says to not be a borrower, and to avoid debt?
Proverbs 22:7  The rich ruleth over the poor, and the borrower is servant to the lender.

1 Corinthians 7:23 Ye are bought with a price; be not ye the servants of men.

Thank you for giving me an occasion to condemn the liberty dollar.  I've just been too busy to get to it until now.  But since you asked for the basis of my lack of support for the liberty dollar, and since the Bible says...
1 Pet 3:15  But sanctify the Lord God in your hearts: and be ready always to give an answer to every man that asketh you a reason of the hope that is in you with meekness and fear:

I thusly took your question as an opportunity to inform my subscribers of my beliefs about the inherant faults of the concept of the liberty dollar.  See, I love the Lord, and the Bible, with my whole heart and soul, and I take his words to mean something.  And the more I learn about God's ways, and his laws that he set out for our benefit and protection, the more I love the Lord, and the greater is my hope to see him when he returns.
Sincerely,
Jason Hommel

After this, I received a few replies, as follows:
 
Thank you Jason.  Although I find your arguments so very, very misguided, I
appreciate your reply.  So I have asked a friend to reply to your rant.
With such opposing views, we really should debate the points you raise.
Interested?

Bernard von NotHaus
Monetary Architect
To which, I replied to Barnard:
Sure. Send your reply, and I'd be happy to post it to my commentary, for the greater understanding of all.

Of course, I quickly realized my mistake, because I very nearly made a promise to post whatever they may send, and so, now, I feel rather obligated to post the following reply, that is nearly 2000 words long.  It is also not a very good reply, but what can you expect?  At least they tried, and at least they replied.  Sorry for the length. Bernard's friend, Dano, replied:
Greetings Jason,
I am a follower of the Messiah and believe in the Word as you say you do.  I want to humbly make it clear that the e-mail response you made in response to Bernard's admonition to "reconsider your statement about ALL paper money is fraudulent," intended or not, doesn't follow the Scripture's admonition to treat others better than yourself (Philippians 2:3).  I am sure you didn't intend to come across as "looking down your pious nose at everyone else."  Especially someone who has worked so hard to provide this country with an alternative to eventually worthless paper we affectionately refer to as Federal Reserve Notes (FRNs).  Certainly I would agree that we all need to order our lives after His Word.  I can tell you that I would not be involved with the Liberty Dollar, as an RCO, if it was in any way offering a fraudulent good or service to the public or was breaking Scriptural principles.  I hope you will read the following in the light it was meant...to illuminate another point of view that I believe is consistent with Scripture and good business practices for our country. 
 
  A piece of paper that tells someone that you will give them something in exchange for something else is a contract.  Contracts are written on paper.  We trade contracts for valuable goods and services all the time.  The true fraudulent paper floating around out there is the money that claims to be "money" but is backed by nothing.  If paper is backed by "something" of value, specified on the paper, it is as if you had in your possession that "something."  To say that having the paper instead of the something is exactly the same as money that is backed by nothing is a generality that can't stand the test of logic or legal precedent. 
 
Scripture talks about the merchants who used weights and measures fraudulently.  The Scripture never connected the product, being measured, with the gold or silver, being weighed, on the opposite side of the scale as having to weigh the same, only the value had to be the same.  A pound of gold is not a fair trade for a pound of potatoes.  Ten dollars worth of gold IS a fair trade for $10 worth of potatoes.  "Diverse measures" speaks to a desire to mislead the buyer and to tell them something weighs one weight when it actually weighs another due to false scales or inaccurate weights.
 
Just because silver boullion weighs the same ounce for ounce as silver shaped into a Silver Liberty doesn't make a $10 Silver Liberty the same value as an ounce of silver boullion.  Who could equate a 3000 pound steel ingot as an equal value to a 3000+ pound automobile?  They might be made from the exact same quality steel and have almost the exact same amount of steel in them but I can't think of anyone who would value the ingot at the same price as the automobile.  They were designed and meant to be used in dramatically different ways!  Just as this example shows the difference between steel in its raw form and its transformed, usable, form, as an automobile, so a Silver Liberty is just as dramatically more usable than an igot of silver. 
 
Since a Silver Liberty certificate is fully exchangeable, one for one, upon request for an actual Silver Liberty, silver piece, then the consumer can readily realize they have equal value.  The "fraud," as you call paper money, only happens when those who produce the money start to fractionalize its value so that the redeemability of the paper becomes less than 100% while still "saying" it is redeemable for 100% of the substance it is backed by.  
 
Let me pose an example that answers this question for you...Did FedEx provide a legitimate service to the American public when it offered to deliver an overnight package overnight while charging five times the price that you could send it by US Postal delivery?  Couldn't you make the argument that they were defrauding the American public because they were doing the same service as the Postal Service was doing (using our subsidized tax dollars), but at a premium price?  Many did say this at first...until you tried to get a package delivered somewhere in the US by a certain day at a particular time of day, GUARANTEED.  The post office couldn't deliver with that precise guarantee.  FedEx could or your money back.  Now all of a sudden you could count on getting an important package there absolutely positively when it had to be there or your money back.  The consumer was willing to pay a premium for that extra service...and still is. 
 
Try taking an ingot of .999 silver down to the local butcher shop and tell them you believe that ingot, at today's spot price, is worth X dollars and, as a merchant doing business in the community, that butcher ought to trade the steak for that ingot and give you change to boot.  Do all that while there are three other impatient customers in line behind you.  Now, how about offering the butcher a Silver Liberty, with a $10 value stamped right on it, and trade .999 silver right over the counter with that butcher and do it in the same amount of time as doing it with FRNs.  Now, THAT is a reason to have a premium built into that commodity!  Not to mention the other value it includes, such as being attractive and feels good in your hand and doesn't contribute to inflation or the national debt and will be stable in times of financial crisis (which just might be coming some day soon). 
 
When you use Scripture like, "The borrower is slave to the lender," I agree with you.  However, where does trading something of equal value for agreed upon goods or services have anything whatsoever to do with borrowing and lending?  You aren't comparing apples to apples.  If you give me four quarters for one paper dollar FRN isn't that a fair trade?  If I give you a $10 Silver Liberty for a $10 Silver Liberty certificate aren't those equal value?  No difference!  The real issue here is that you are trying to buy goods and services with a debt instrument and this is fundamentally impossible just as you can't borrow my car and trade it in for another one and say the new one is now yours.  This is the true definition of the scripture you quoted about the borrower is slave to the lender.  The Silver Liberty seeks to return us to constitutional money where you actually pay debts with gold and silver instead of discharge debts with borrowed debt instruments.
 
You made this statement...Furthermore, the nature of the business of the liberty dollar, is to
incur liabilities.  In other words, you owe silver to the holders of your paper.  But did you know that the Bible says to not be a borrower, and to avoid debt?
 
The application of this Biblical principle is totally out of context.  The purchaser of the Silver Certificate chose to hold an equivalently valued piece of paper for the exact same price that he perceives as less cumbersome to use.  He believes, rightly, that he can trade this paper for any good or service he could trade for the actual Silver Liberty because the recipient of the paper also believes he can, at any time, redeem that paper contract for the actual item it says it is a substitute for.  Since their is no fraudulent representation of value their is no fraud perpetrated and the users of the paper certificate receive the service they wanted...convenience.  There is no liability since the consumer doesn't want the Silver species but rather wants the convenience the paper gives him.  He knows that the moment he wants to convert the paper to Silver species he simply calls on his local RCO and asks to exchange it one for one.  As a RCO I will be happy to do that for anyone that come in off the street to see me.
 
You asked another question...Which do you think is a safer place for wealth:  A huge pile in one place with a few guards, or having the wealth distributed among hundreds of thousands of gun owners who all are responsible enough to both put it into safes and keep the location of those safes hidden?
 
Think of the logistics required to penetrate many levels of security at a mint designed to safeguard a national asset.  Then, if they were successful, to load and transport hundreds of tons of conspicuous metal to some other secured location without detection.  It is the stuff of movie making but so was the idea of robbing Fort Knox.  The perception of security is in the eye of the beholder, tis true, but, when was the last time you have heard of any repository of precious metals being emptied out by crooks?  I submit to you that your "fear," you hypothocize here, will be realized ONLY about the same time that you and your friends guns are confiscated, peacefully, by your government. 
 
Do you even know what the Bible has to say about making promises?  That is says "swear not" and "make no oath"?

James 5:12 But most of all, my brothers and sisters, never take an oath, by heaven or earth or anything else. Just say a simple yes or no, so that you will not sin and be condemned for it.
 
Let me ask you another question...Do you have a mortgage?  Do you believe it wrong to buy a house without putting the full amount down "cash on the barrelhead?"  If you have a mortgage, or a car loan, then you have made a "promise to pay."  You have contracted to pay a certain amount each month in exchange for the use of that home or car.  Both parties are satisfied with the arrangement.  As James 5:12 says, let your yes be yes and your no be no.  Yes I will pay my mortgage on time each month.  No, I won't buy your house for that price or for those terms.  There is no fraud involved here.  Neither is there any breaking of God's principles when someone says, "If you give me a Silver certificate I will give you a Silver Liberty in exchange."  It is, in fact, honest weights and measures in the most practical of terms.
 
Consider this example alternative we are faced with each and every day.  You trade $100 in FRNs for goods or services and feel you got a good deal and gave a fair commodity in exchange for those goods or services, right?  The person you traded with goes home and puts that same $100 FRN in his safe for several months and then tries to spend them for something they want.  But, since he put that money in his safe inflation took a turn for the worse and 5% of his hard earned money disappeared due to this dishonest tax.  A tax that was capable of actually stealing his money while it was still locked up in the safe!  Now he can only purchase $95 worth of goods and services.  Who got that other $5?  The International Banking Cartel and the Government that placed those extra dollars into circulation.
 
Now let's look at the Liberty Dollar alternative...You trade $100 in Silver Libertys for those same goods or services and he puts the Silver Liberty in his safe.  Three months later he takes them out and they will have gone up in value in relation to the price of FRNs.  If it just so happens that the crossover point happened in the mean time he will have actually nearly doubled the face value of his Silver Libertys.  Which of the two options listed above benefited you and the recipient of your purchase the most?  You circulated a currency, that you were able to purchase at a discount, effectively increasing your purchase power, while benefiting the long term purchasing power of the recipient at the same time.
 
In practical terms, in today's market place, can you tell me what other money we can readily use over the counter, in a easily tradable form, can do this amazing transformation for our country? 
 
If you believe in Revelation you know things are going to get lots worse before they get better so we absolutely need a currency that will trade in value and not be made worthless by national or economic disasters.  Personally, I want my community to have a fighting chance to keep a value backed currency, to stabilize local trade even if we realize a crash of epic proportions.  Silver Libertys can do this while FRNs can not.
 
In light of these significant, real life issues, I would urge you to reconsider your position on what is and what is not fraudulent about a silver backed currency that can trade one for one with FRNs and can still be tied to the market price of the base commodity.  Please direct your ire, about fraudulent money, to the government and the FED and not the only source I have seen, so far, that has a solution built into its functionality if and when we realize the coming economic disaster. 
 
Thank you for taking the time to read this perspective.  I hope you realize that it was meant to educate not humiliate or equivocate.  We all must chose clarity with our currency for if we fail at this we stand no chance against what IS coming.
 
Dano

I did not respond to Dano, but I will have the last word here.  I believe Dano's argument is basically that "because paper is convenient, it justifies the 30-100% mark up in issuing paper money with a face value that may be 30% to 100% higher than the underlying bullion value".  But that's like saying, "This racket is so good, we can't stop the obvious theft we are getting away with due to people's ignorance.  And besides, we are stealing less than the other racket of the Federal Reserve Notes, which are backed by nothing, so next to them, we are saints."

My counter argument is that the standard is not other evil men.  The standards are set by God.  To God we will stand, or fall. 

Other men sell silver bullion, in convenient coin form, for 5-10% over the spot price, not 30-100% over the spot price.  And those other men actually deliver the silver. 

To answer Dano's question:  No, I don't have a mortgage on a house, I rent.  I don't have a loan on a car, I own my cars in full.

This point about loans was again overlooked by Dano, because his argument is basically that "we are all debtors, probably including you, so it does not matter that we owe silver to the holders of our Liberty dollars"...  Again, the standard is not the fraud of other men.  God sets the standard.  To God we will stand, or fall. 

Dano LIED when he wrote:  "Since a Silver Liberty certificate is fully exchangeable, one for one, upon request for an actual Silver Liberty, silver piece, then the consumer can readily realize they have equal value."

In reality, when Dano says something is exchangeable, he deceives the holders of the Liberty dollars into thinking that the $10 Silver Liberty note and one ounce of silver, and one $10 Federal Reserve Note have equal value.  But they do not!  What is the list of banks that will accept the Liberty Dollar notes?

So, Dano lies!  If the Liberty notes are so "exchangeable," then why can't I get $10 in FRN's for all of my silver tomorrow!?  Yes, I would much prefer a $10 FRN to a $10 Liberty, because I could quickly spend the $10 FRN with other bullion dealers who would sell me silver at just over $7/oz., and I could make a hefty profit in the process.  That one cannot do this, and can NOT get $10 per ounce for silver in bulk is TOTAL PROOF that the entire concept of a fully redeemable $10 Liberty note for one ounce of silver is FRAUD, and that the entire program is a fraud upon the public when they take $10 notes backed by much less than $10 worth of silver! 

And since Dano thinks he is not lying, it is even worse for him, because he has clearly deceived himself.  I'm troubled on whether he will even be saved.  I fear he is one of those men who thinks they will be saved, but to whom Jesus will say, "I never knew you", as he did in Matthew 7 and Matthew 25. 

Matthew 7:
21 Not every one that saith unto me, Lord, Lord, shall enter into the kingdom of heaven; but he that doeth the will of my Father which is in heaven.
22 Many will say to me in that day, Lord, Lord, have we not prophesied in thy name? and in thy name have cast out devils? and in thy name done many wonderful works?
23 And then will I profess unto them, I never knew you: depart from me, ye that work iniquity.

Mat 25:10 And while they went to buy, the bridegroom came; and they that were ready went in with him to the marriage: and the door was shut.
Mat 25:11 Afterward came also the other virgins, saying, Lord, Lord, open to us.
Mat 25:12 But he answered and said, Verily I say unto you, I know you not.

Finally, at the start of Dano's letter, he said that I should think of others as better than myself, as the Bible admonishes.  He referenced: 
Phillipians 2:3 "Do nothing from selfishness or empty conceit, but with humility of mind regard one another as more important than yourselves;"

As if this somehow protects him from exposure as the liar that he is!  How insane!  Where is Dano's regard for the people he is defrauding?  I rebuke him, not only in the hope of saving his soul, but also in the hope of saving the pockets of his customers that he is stealing from!  I write because I love his 100,000+ holders of his paper, people whom I don't know, some of whom are also my readers.  I write because I have love for the people on my email list, and so, I take the time from my busy days to rebuke him.  I rebuke him even at the risk of harm to my own reputation in the precious metals community, as many will take me for being too overzealous, too argumentative, unrespectful, unkind, or unloving.  I rebuke him because the Bible, in many places, commands those of us who are qualified, to do so as follows:
1 Timothy 5:20  Them that sin rebuke before all, that others also may fear.
2 Timothy 4:2  Preach the word; be instant in season, out of season; reprove, rebuke, exhort with all long suffering and doctrine.
Titus 1:13  This witness is true. Wherefore rebuke them sharply, that they may be sound in the faith;
My guilt is that I use FRN's.  Yet, I nearly always try to tell people that I'd much prefer to give them silver at it's market value, and not defraud them with paper.  Then, yes, they are choosing to be defrauded with paper, and they generally force me to defraud them with paper, as they reject my silver.

The verse that shows my guilt is this one:
Deuteronomy 25:13   Thou shalt not have in thy bag divers weights, a great and a small.
14   Thou shalt not have in thine house divers measures, a great and a small.
15   But thou shalt have a perfect and just weight, a perfect and just measure shalt thou have: that thy days may be lengthened in the land which the LORD thy God giveth thee.

Yes, I do have "in my wallet/bag", and in my house, diverse weights; a just and an unjust.  I have silver and paper Federal Reserve Notes.  But at least I'm aware of my guilt on a daily basis, which allows me the ability to pray for forgiveness and to try to repent as I offer people the just weight as often as I can.  I expect that the day will come, in my lifetime, that I will never have to have an unjust weight and measure, not in my wallet and not in my house.  That will be a glorious day that I eagerly look forward to. 

The Liberty Dollar solution is nothing of the kind, and is no substitute.  God created the substitute we need, and they are gold and silver. 

You can neither weigh, nor measure, a paper Liberty Dollar. 

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One of the arguments used by the proponents of $10 silver one ounce coins that contain $7-8 worth of silver is that "as long as the face value of the coins is higher than the metal content, the coins will circulate".  This means that as each person realizes he was conned, he will try to pass off the con (the coin of intrinsic value lower than face value) on the next person.  And when silver moves above $10 face value, then the coins will be hoarded.

My counter argument is that silver should trade based on the price in the "ounce", then there is no reason to hoard them (except for savings) and people will trade them more easily, as it is no con, nor act of fraud, to pass them to the next person.  It is not impossible or unreasonable to expect.  Two currencies traded side by side on a whole continent in Europe for years as the Euro was introduced. 

Governments play the evil seigniorage game, whereby the try to make the face value of a coin higher than the metal content.  This is also known as debasement, and was described as something so evil by the founding father of the U.S. that they made the penalty for this crime the death penalty, in the coin act of 1792.
    Penalty of Death for de-basing the coins. Section 19. And be it further enacted, That if any of the gold or silver coins which shall be struck or coined at the said mint shall be debased or made worse as to the proportion of the fine gold or fine silver therein contained, or shall be of less weight or value than the same out to be pursuant to the directions of this act, through the default or with the connivance of any of the officers or persons who shall be employed at the said mint, for the purpose of profit or gain, or otherwise with a fraudulent intent, and if any of the said officers or persons shall embezzle any of the metals which shall at any time be committed to their charge for the purpose of being coined, or any of the coins which shall be struck or coined at the said mint, every such officer or person who shall commit any or either of the said offenses, shall be deemed guilty of felony, and shall suffer death.

It is foolishness to say that only debased coins will circulate, and a justly measured, justly weighted, and justly valued coin will not.  The longest lasting coins, and governments, are those that keep to just weights and measures.  The Byzantine coins circulated for over 500 years, and so did the standard weight of their gold coins.
If the nation returned to the moral standards of 1792, the minters of the $10 Liberty coins would be given the death penalty for their crime of making a coin whose metal content is less value than the face value. 

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Back to more of my weekly commentary:

Timeless wisdom:  Don't fall in love with any stock.  Remember to sell, especially if a stock has treated you well, and if you have good gains.  If you buy a stock, after having done your research, and if you expect it to double, or go up 100% over the long term, and if you were blessed, and the stock goes up 200% in the short term, then by all means, you must sell.  After all, if a stock exceeds your expectations, you should be expecting it to go down, unless the company fundamentals have changed significantly to warrant a new expectation.

If you buy a stock, expecting it to go up 1000%, and if it goes up 100%, $1 to $2, remember, it only has the potential of about a 400% gain left! ($2 + $8 = $10)  Perhaps there is another stock with 1000% potential that you can acquire after taking 100% gains?

If you buy a stock, expecting it to go up about 1000%, and if it goes up 200%, $1 to $3, remember, if the story has not changed, it only has the potential of about a 200% gain left! ($3 + $6  = $9)  Or, much less if there has been dilution along the way!

Now, I know that most investors just want to buy a stock, then forget about it, and hold for the long term.  However, if the wonder of wonders, and miracle of miracles happens (sorry, I just watched Fiddler on the Roof), and if the stock goes up far more than you expect, (and especially much sooner than you expect) then sell! 

Now, again, I know that most of my long-time readers should be long term bulls on silver, since you should know the bullish story on silver so well.  But here's the thing:  You must always be looking for what to buy next, in case the wonderful happens, and one or some of your stocks rise big.  That way, if you have been doing your research, you know what else is cheap out there, and you know what to buy next. 

I know you can get confused, or intimidated easily by all the great deals.  I certainly do...  And you know you don't want to buy them all, because you would end up spreading out your money too thinly among too many stocks.  But here's the great thing.  You don't have to buy them all.  In fact, it's better if you don't buy them all.  Do the exceptional thing:  First, get fully invested in many quality junior stocks, and then, keep looking!  Then, find several great stocks that you would love to buy, and then, don't buy them.  Just wait.  Then, when the stocks you do own move up really well, sell them and buy one or more of the other stocks you have been looking at. 

Think of it this way:  If you were a shepherd wandering around with your flock thousands of years ago, your job is to tend your flocks.  You have to lead them to good pasture.  But not only that, you have to always be looking around for more good pasture, for when the good pasture you last found is "tapped out". 

Similarly, you have to tend your stocks!  You need to pay attention to them, whether up or down.  If up significantly, think about selling.  If down significantly, and if the company fundamentals are great, or better, then buy more.  Think of it this way:  the pasture just got greener!   Not because the grass is poisonous and the sheep won't eat it, but because you are early, and the sheep have not yet arrived!

This brings me to attitude!  My attitude is always positive, because I know I've done my homework, and I'm fully invested in the silver sector, and I'm working and earning money.  If silver is down, I'm happy, because I have the opportunity to buy more, cheap.  If silver is up, I'm happy because my investments are doing well. 

A silver investor with a bad attitude, and only a half-hearted commitment, and is unsure of the fundamentals of silver, will be unhappy either way.  He will say, if silver is down, his "partial" investment did poorly.  And if silver is up, he will curse himself for not buying more.

And always remember to diversify, as you can afford to.  One of my rules is to never buy into a stock so that any new purchase is more than 10% of my portfolio.  Then, if it does really well, and outperforms the rest of the portfolio as I anticipated, then I have a need to re-diversify, as I'll need to eventually sell it back down to under 10% of the portfolio.

However, if you are a smaller trader, you would not want to diversify.  The reason is that the commissions could be too costly.  It is cheaper to pay a one-time $7/trade fee on one $2000 trade, than to pay it ten times, because by then, the commission is 3% in, and 3% out, for a total of 6% on each trade.

Please take "real profits" from the gains in silver stocks.  Right now is not a good time to take profits, but rather, it's time to invest more.  But as the stocks outpace silver bullion, please remember to sell the stocks for real money, and acquire more silver bullion with the profits of the gains in the silver stocks.  That should be why you are buying silver stocks, for that one reason only, to outpace the gains in silver bullion alone.  Therefore, if you are successful, you will be able to acquire more silver bullion, in the process. 

To continue this analogy, I'm also very much like a shepherd both with my stocks, and with my readers.  The newsletter writing business creates an enormous responsibility for us who write.  It's an amazing thing when we mention a stock we like, and then the volume triples, and the stock moves up from 5% to 50% in one day.  For me, I feel tremendous pressure to "be right" because so much money from so many people end up on the line based on what I say, or write. 

It's like the newsletter writers are all shepherds, and there is a tremendous flock of sheep (the public).  If I mention a pasture looks good "northwest", a number of sheep will follow instantly, perhaps realizing there might not even be time to do research to see if it looks good in that direction.  And that's potentially very dangerous, both for me, and for my readers.

Perhaps there is a way to "ease the blow" of highlighting a specific company...  I would like to feature more companies, more often, but I often don't have that much time.  I notice that I've written up specific articles on specific companies only five times in the last year and a half, and I'd like to do more.  So, I had an idea to hire people... but that takes too much work to train a person, and what if the one person is not very good?  Instead, I finally thought of a more free-market oriented solution!  Instead, I will sponsor regular Essay Contests!

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Essay Contest!

Winner will receive one 100 oz. silver bullion bar.

Topic:  Silver & IMA Exploration
Limit:  800 word MINIMUM to 1500 words, MAXIMUM
Deadline:  One Week:  Friday, midnight, pacific time, on February 25th, 2005.  (Use next Friday's closing price in the article.)
Style:  Somewhat like my past essays on companies, such as found here:
http://www.gold-eagle.com/research/hommelndx.html

Expatriate Resources: Silver-Zinc Penny Stock - 09 September 2004
Nevada Pacific Gold - 23 June 2004
Market Perspective & Cabo Mining - 12 February 2004
Sterling Mining - 29 December 2003
Canadian Zinc--Silver Potential - 23 October 2003

Content:  Comment on why you like silver, and explain the fundamentals of the company, such as the share structure, market cap (based on next Friday's close), and company story, plans, management, and developments.  Must focus on fundamentals only.  No technical analysis (no curves or lines on charts).  It is highly recommended that you review the web site, the recent news, the financials, and call the company if you have any questions, and/or to get the latest "company pitch". Also, include any concerns investors may have in the company.   Be persuasive, either positive or negative is ok, but don't say "buy" or "sell", and don't issue any price targets.   Please spell-check and grammar-check your writing, and read it out loud to someone else before sending it. 

SEC (Securities and Exchange Commission) Rules: You MUST include whether or not you own shares in the company featured, and whether or not you have been paid by the company, or work for the company.   If your immediate nuclear family members or household own shares, or work for the company, that counts, and you need to disclose that, as well.

Additional Rule:  You must agree to not sell any stock in the company featured for one week following release and publication of the article.

Send your name and address (so I know where to send the silver bar), and whether you would like your name, and/or email address to be attached to the article.  (Honestly, getting your name out there as an analyst who is interested in silver companies at this time may be worth far more than the silver bar--but in this industry, I understand if you would rather remain anonymous, as there is safety in that, too.)

All submissions become the property of Jason Hommel so that I can send it out in my name as either the author, or editor (depending on your preference), and I have the right to edit, change, add to, or delete from any essay, or even combine elements of several essays (even if there is only one winner).

Send plain text, a word file, or html, to: j@silverstockreport.com

I expect from 2-6 entries, certainly no more than 10, so I think you have a good chance of winning.   This is the first essay contest, and next week, I'll let you know how many people entered.  I would like to try to do this weekly, if it works out. 

This can be a good chance to help your sons or daughters to become stock analysts, and you can help to teach them about the stock market.  If done right, maybe they can eventually help you manage your portfolio.

Please vote for the next silver stock for the next essay contest!  Email:  j@silverstockreport.com  --PLEASE PUT "I vote for..." followed by the NAME OF THE COMPANY IN THE SUBJECT LINE, AND KEEP THE BODY OF THE EMAIL BLANK. 

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If you want to know where my money is, what stocks I own, and in what proportion, please sign up at silverstockreport.com to the "look at my portfolio".

For all goldismoney.com subscribers, please send a copy of your receipt (or a past copy of the "look at my portfolio") to support@silverstockreport.com Only support@silverstockreport.com can issue you passwords.  I cannot.   Prior customers can also get a quick copy of the latest report if you email your receipt, (or a past copy of the "look at my portfolio") to me here: j@silverstockreport.com (Neither I, nor my new support staff, has access to the prior goldismoney customer database, so please send your prior email recepts, or a past issue.)

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If you feel you may have missed an email from me, you can find the archives from my email signup page

The email sign up page:
http://www.silverstockreport.com/cgi-bin/dada/mail.cgi
The archive of past emails:
http://www.silverstockreport.com/cgi-bin/dada/mail.cgi?f=list&l=ssr

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My Conference Schedule:

I will be attending:
1. The PDAC in March 6-9 http://www.pdac.ca/ --I will not be speaking, just attending.
2.  The gold show in Chicago in the spring--2x a year. --I will be on a panel
3.  The 4 annual Cambridge House shows (I usually speak on silver for a 1/2 hour, both days, and maybe a panel)... see www.goldshow.ca  The next is the Calgary Resource Investment Conference, April 10 & 11
4.  The show in Idaho again, the 3rd Silver Summit. --I'll be speaking.
5.  GATA's show in the fall.
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To read about my religious views, see my other web site, bibleprophesy.org There are two essays near the top of the page that explain why I believe the entire world will return to using gold and silver as money again before the end times.  See Ezekiel 38.  Also, see my essay: Biblical Guidelines for Managing your Money
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Because I have a market reach, I also receive a lot of tips about silver stocks.  And thus, I believe I may have invested in some of the best ones that came my way.  If you believe I may have an edge based on my work and unique position... then the best way for me to share this with you is to is tell you more precisely where I put my money.  It's not investment advice.  I offer a monthly "look at my portfolio".   I do not issue recommendations, and I don't list number of shares or the size of my portfolio, but I will show the top investments in my portfolio, by rank, updated monthly.  It includes which stocks are 9% and more of my portfolio, those between 9% and 6%, under 6%, under 3%, and under 1%.

To order, visit: silverstockreport.com
Price:  Monthly rebilling at $39.95. --most convenient, best customer service
Customer Service:  http://www.silverstockreport.com/customerservice.htm
Toll Free Customer Service Hotline: 800-370-4154

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Private Placement Opportunities for Sophisticated/Accredited investors: (This is not a solicitation for any stock, and I'm not brokering any securities) To be added to my PP email list, sign up at http://www.silverstockreport.com/cgi-bin/dada/mail.cgi
Just select the second list from the drop down menu.

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2 Silver Stock Funds

1.  Richard Greene, thundercapital.com $100,000 minimum, 2 year hold, sophisticated/accredited investors only.  Will use margin, and/or short sell.

2.  Philip Judge or Simon Heapes, anglofareast.com  Less than $5000 minimum?  No margin or shortselling.

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General Commentary on Silver (slightly modified from last week):

Now, I think it's time that the silver community started a letter writing campaign to the editors of newspapers around the world, to tell them about silver. 

Here is a sample letter:
May 21, 2004

Dear Editor,

I'm a silver investor.  I believe paper money is fraudulent.  There is over 30 trillion dollars, U.S., worth of bonds in the world, but less than 2 trillion dollars worth of gold, according to gold.org. 

As of April, 2004, the size of M3, the money in U.S. banks, has reached 9.1 trillion dollars, yet due to fractional reserve banking, the total of U.S. currency and coin in circulation is only 724 billion dollars as reported by treas.gov.

At silverinstitute.org and cpmgroup.com, they each report that silver has been in a deficit for about 15 years, where world mine supply has been about 500 million ounces, scrap supply about 200 million ounces, and industrial and jewelry demand about 800 million ounces.  The difference, about 100 million ounces, has come from investor and government selling, drawing down reserves of silver.  Known supplies of refined silver are down to about 250 to 600 million ounces.   At the COMEX, they are down to 48 million ounces of silver left that is registered for delivery, which you can see at nymex.com. 

The governments of the world are printing up too much paper money, and the world is running out of real money, silver.  I believe this will lead to the price of silver rising dramatically in value, around the world.

I urge your readers to verify the statistics I have provided, and to make their own decisions.

Sincerely,

Jason Hommel
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I wrote an article:
Miners to Use Silver as Cash - 27 November 2003
Apparantly, I was about 6 months too early in my predictions, but that's ok, I'm a very long term thinker and investor.  I did not miss the mark by too much time, and if you think in terms of decades, I was right on the mark.

 There are several companies that are increasingly deciding to hold their cash in the form of silver bullion.  These companies are:

FSR.TO
SSRI SSO.V (SILVER STANDARD RSC)
SRLM.PK (STERLING MINING)
EDR.V EDRGF.PK (ENDEAVOUR SILVER)

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The Silver Valley in Idaho is bringing back the use of silver as money.  A silver one-ounce coin, a "Sterling" to be used as a $10 piece.
http://shoshonenewspress.com/index.asp?Sec=News&str=2869
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For news on the New Hampshire Sound Money Bill, that proposes to use U.S. Treasury minted Silver Eagles and Gold Eagles as money see:  http://www.goldmoneybill.org/

25 Reasons why the Sound Money Bill Must Be Supported
by Jason Hommel

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There are two excellent annual silver surveys that are sponsored by industry.

The survey by silverinstitute.org costs $195, 87 pages.
http://www.silverinstitute.org/wssum03.pdf -- 8 page free summary of last year's reeport.

The survey by cpmgroup.com costs $150, 162 pages.
http://www.cpmgroup.com/SSpress2004.pdf --3 page press release.

 The two reports present the case that about 500 million oz. of silver are mined each year, about 200 million oz. of silver comes from scrap, and about 100 million oz. of silver comes from investor dis-hoarding, either by individuals or government sources, in order to meet the annual demand of about 800 million oz. of silver by industry & jewelry.  This is wildly bullish, because investors are net selling more than buying, and I think the potential of investor demand is huge, and can be measured by seeing how much paper money there is in the world.
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Here are two U.S. Government produced reports on silver, containing data on years from 1900 to present, on U.S. & world  production, and U.S. consumption, and U.S. industry & government stockpiles.

Report #1
http://www.goldismoney.com/ssr/USsilver.xls
Report #2
http://www.goldismoney.com/ssr/USsilver2.xls

I evaluated these government produced reports in my silver stock report #36.

In sum, we are running out of silver.  The U.S. government had over 3 billion ounces of silver in 1940, and today, has very little left, or none.

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The Commodities Futures Trading Commission

The CFTC report on the allegations of manipulation in the silver market -- 9 page report
The CFTC report confirmes much of the research above, and almost outlines the bullish case for silver!
--My comments on the CFTC report are in silver stock report #34 & #35

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Silver consumption, per capita, in the U.S. is the same today, in 2004, as it was in 1945.

And what is the per capita consumption of silver in the U.S. today?  5500 tonnes x 32152 = 177 million ounces of silver used per 285 million people.  177 / 285 = .62 oz. silver consumed per year, per person, in the U.S., whether in 1945, or in 2004.  Each person in the U.S. today, on average, uses 6 tenths of an ounce of silver. 
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As the New York Times, January 11, 1859, page 2 said---
"It is well known that the most colossal fortunes the world ever saw have been based on silver mines..."
--quote found by Charles Savoie

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WHERE and HOW to BUY SILVER BULLION
http://www.silverstockreport.com/buybullion.htm

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My 2005-2010 price predictions for gold and silver:
2005: $595/oz. gold,  50:1 ratio = $12/oz. silver
2006: $1011/oz. gold,  30:1 ratio = $34/oz. silver
2007: $1719/oz. gold,   10:1 ratio = $172/oz. silver
2008: $2923/oz. gold,  5:1 ratio = $ 585/oz. silver
2009: $4,969/oz. gold,  1:1 ratio = $4969/oz. silver
2010: $8448/oz. gold, 5:1 ratio = $1698/oz. silver
2011+: infinity dollars/oz. gold, infinity dollars/oz. silver.

I just moved up the years, one each from last year.  The reason why I'm so bullish is the scarcity of silver, and also, I believe one single billionaire could move the price, at any time, to $25/oz.  It would be folly of me to suggest that 2005 should see an average of $8-10/oz. for silver.  It could fly high, starting at any time.

I calculate the gold price rise by guessing that by 2010, M3 will have a "gold-value" like it did in 1980, which is to say, M3 was worth 2 Billion oz. of gold or less.  It also assumes M3 will about triple in that time.  These figures are conservative, because I see no reason that M3 should be valued more than the gold the U.S. actually holds, which is a mere 261 million oz., not billion.  Today, the M3 value is $8870 billion / $425/oz. = 19 billion oz. of gold M3 could buy in theory.  The silver:gold ratio is also a very, very vague guess, reflective of monetary demand chasing silver, which is more scarce than gold in above ground, refined form. I have no idea when the ratio of 15:1 will be exceeded, I'm just totally guessing.  I suppose it could happen this year or next month for all I know.  Of course my real price targets are infinity dollars per oz. for both gold and silver when all is said and done, I just don't know how long that will take, nor what year it will be.  But my point in producing the price predictions is to show my bullishness for silver and gold.

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 A great overview on silver: Douglas Kanarowski's 78 Approaching Forces For Higher Silver Prices

See also Douglas Kanarowski's article:  What Impact Will Digital Photography Have on Silver?

Doug's third article is also excellent: Silver -- the next big thing in the global markets? Answering A Few Silver Questions

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 See the 600 year silver chart to see how undervalued silver really is:
http://goldinfo.net/silver600.html

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Look at the summary of the world silver survey by GFMS Limited on behalf of The Silver Institute :
http://www.gfms.co.uk/Publications%20Samples/WSS03-summary.pdf

Note, there is virtually no monetary nor investment demand. Note, the 2002 mine production (585 mil oz.) is greatly exceeded by industrial, photo, and jewelry demand. (838 mil oz.).  Note the chart on page five, "Supply from above-ground stocks".

The difference between mine supply and industrial demand was met by a combination of three factors: 1.  Government selling, 2.  Private selling, 3.  Recycling

U.S. government selling is ending, as their stocks have run out, or will run out.  This factor will reverse, because the U.S. government will need silver to continue their coin program, and/or need silver when they wake up and decide they need to replenish their strategic stockpile for domestic security.  Silver is a war material.  China's selling of silver will also likely turn into buying, as China will need silver for continued industrial development, or when they also lose faith in the U.S. dollar.

Private selling has been rapidly shrinking and is now almost ended, and should turn into buying, and become monetary demand.  Monetary demand is everything in the silver supply / demand situation.  It's not now.  Now, it's nothing.  But it will become something incredible, because the dollar is dying.

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The following is a "must read":  Ted Butler's best ever explanation of how silver is manipulated lower than it should be.
http://www.investmentrarities.com/11-04-03.html

Over 3600 people have signed the silver petition to stop the manipulation at the COMEX:
http://www.PetitionOnline.com/comex/

Ted correctly points out that a lower price creates excessive demand from consumers.  However, Ted Butler does not point out, and neglects to mention, that a perpetually low price also creates lack of demand from investors who are "trend investors". 

I think most silver experts over-analyze all the supply and demand factors of the silver market.  No factor is more important than monetary demand.  The force of photographic demand is like a light breeze compared to the hurricane or tornado of monetary demand.  Monetary demand is everything.
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Consider the gold market for a moment:  Even short selling at the COMEX is nothing compared to monetary demand.  The short position most certainly helps to depress the price of gold as the short position is growing larger.  However, it adds fuel to the fire if there is short covering, and thus, it can boost the gold price later.  But the commercial short position on the COMEX is next to nothing compared to the non-reported "over the counter" trading that is done that does not appear on the COMEX.

(Numbers in metric tonnes, 32,152 oz. per tonne.)

870 tonnes -- the paper position at the COMEX, 280,000 contracts for 100 oz. each.
5,000 tonnes -- the official number admitted that the central banks have sold.
15,000 tonnes -- the number GATA research shows that central banks have sold / or leased.
30,000 tonnes -- the number of official central bank gold, minus either the 5000 or 15,000 tonnes.
145,000 tonnes -- all the gold mined in the history of the world.
2,600 tonnes -- annual mine supply
4,000 tonnes -- annual demand

And all of that is nothing compared to the amount of dollars out there that exist that could buy gold. $20 trillion bonds, $9 trillion M3 = $29 Trillion.  A mere 1% is $290 Billion, which, at $500 /oz. is a massive demand of 18,039 tonnes.  Do you understand what that means?  That means that far, far less than 1% of dollars, in either bonds or M3 can buy gold, because there simply is not that much gold available. 

Long before 1% of U.S. paper dollars tries to buy gold, gold will be going up well over $1000/oz., and silver will be headed up over $50/oz.

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To scare away investors--that is the entire reason gold and silver are manipulated in the first place.  Only the trend investors can be deceived.  The problem is that nearly everyone is a trend investor.  Very few investors understand value.  If people knew the facts and used their brains, the available above-ground refined silver would be gone by tomorrow, and the price would be well over $20-50/oz.  But don't trust me, check the numbers and follow the links:

"The money chart"

      1,000,000,000,000: 1 Trillion dollars
             1,000,000,000: 1 Billion dollars
                    1,000,000: 1 Million dollars
$200,000,000,000,000: Estimated total derivative exposure of all banks in the entire world. (20 x U.S. GDP)
  $75,000,000,000,000: U.S. Govt. unfunded liabilities; social security, etc.
  $45,153,000,000,000: U.S. Household wealth, as of first quarter, 2004. (Includes Real Estate, and investments)
  $33,000,000,000,000: World bond market, yr end, '01:  http://tinyurl.com/vr7u
  $26,400,000,000,000: World stock market, June 2002: http://www.nyse.com/press/1044027443845.html
  $20,200,000,000,000: U.S. bond market, yr end, '02:  http://tinyurl.com/vr7g 
  $11,447,800,000,000: U.S. GDP, 2004 q1 http://www.bea.doc.gov/bea/dn/home/gdp.htm
  $11,300,000,000,000: NYSE U.S. stock market, April, '04 (363 bill/s x $31.14/s ave.) http://nyse.com (See: Market info: quick facts)
   $9,391,000,000,000: M3 (money in U.S. banks) Nov, '04  http://tinyurl.com/vra0
   $7,595,000,000,000: US debt, 1-06-2005   http://www.publicdebt.treas.gov/opd/opdpenny.htm
   $2,360,000,000,000: U.S. annual budget 2005 http://tinyurl.com/3xbd2
   $1,860,000,000,000: World "official" gold mined in all of history, 145,000 T (4.6 bil oz.) @ $400/oz. http://tinyurl.com/vrcc
      $400,000,000,000: Estimated silver mined in all of history: 40 billion oz?  @ $10/oz.  http://snipurl.com/93j1
      $738,000,000,000: Total U.S. paper currency & coin in circulation, Sept. '04  http://www.fms.treas.gov/bulletin/index.html
      $700,000,000,000: Annual U.S. budget deficit (2004). 
      $700,000,000,000: Annual U.S. current account deficit (trade deficit) for 2004.
      $380,000,000,000: Market Cap of General Electric (biggest U.S. company) http://tinyurl.com/vrcn
      $290,000,000,000: Debt of General Motors (biggest U.S. car company) Jan 2005
      $164,700,000,000: Debt of Ford Motor Co. (2005) http://tinyurl.com/vrd1
      $109,600,000,000: US gold, 261 mil oz., @ $420/oz. http://tinyurl.com/vsr9
      $100,000,000,000: all the world's gold stocks/equities (estimated?)
        $75,000,000,000: Money flowed into Equity funds in the first quarter, 2004
        $18,000,000,000: Market Cap of Newmont Jan '05 (biggest gold company in the world)
          $8,226,000,000: all the world's "primary" silver stocks (80 of them on this list, as of June 25, 2004)
          $6,710,000,000: 671 mil oz. of "identifiable" silver bullion left in the entire world, according to GFMS @ $10/oz.
             $288,000,000: 40 mil oz. of "registered" COMEX silver bullion (1-05-05) @ $7.2/oz.  http://tinyurl.com/vrcw
So, what do all those stastistics mean?

For a while I was using M3 and dividing that by the US gold (261 million ounces), which implies the us dollar is 84 times more valuable than it should be, and that gold should hit $34,000/oz. after the fraud is destroyed.  Today, I realize I need to add in the Bond market, because bonds are an asset class designed to siphon away and replace real money, which is to say, gold.  This gives a price of about $111,111/oz. for gold.  At $ 430/oz, this implies that US bonds and paper currency are 258 times more overvalued than gold.

Gold is overvalued relative to silver, because at current prices, it takes about 60 ounces of silver to buy 1 ounce of gold.  Historically, this ratio was 15 or 16.  Given the silver shortage, this ratio will hit 10:1 or 5:1, or even 1:1.  Thus, gold is perhaps 60 times more overvalued than silver.

Silver is overvalued relative to certain select silver stocks, perhaps by a factor of 3 or 10 or 20 to one.

Thus, if you multiply all those numbers, 258 x 60 x 10,  You will see that bonds and currency are overvalued relative to select silver stocks by a factor of 154,800 to one. In other words, if silver stocks reach their true value, and paper currency disappears as it always does, then you might expect certain silver stocks to go up in relative value by a factor of 154,800 times more than they are worth today.  By that time, you should definitely sell the silver stocks, and buy gold.

Can silver stocks really appreciate so much? Is there historical evidence for such a crazy thing?  Yes.

See http://www.sterlingmining.com/old.html
Excerpt:
"CDE rose from penny stock status (.02 in 1967) to an NYSE-listed, $60 per share stock in 1980. In fact, the average share on the Spokane Stock Exchange rose in value nearly 16000% (yes, sixteen THOUSAND percent), as America could not get enough of silver and silver stocks."

CDE rose by a factor of 3000, or 300,000%, and by 1980, the metals boom was stopped short, and paper money's death was postponed.  If paper money dies a death that lasts a generation world-wide, then even greater gains should have been expected.

For this reason, a wise silver stock investor should NEVER sell silver stocks for paper cash.  A wise silver stock investor who looks for value would never sell a fairly valued silver stock for an overvalued silver stock that traded for hundreds of thousands of times more value than it should be.  Likewise, there is no excuse for a silver stock investor to have any cash or money market or bonds in his portfolio for any reasonable length of time, except for when selling one silver stock to raise the cash for another silver stock, or for when you need to raise the cash to buy silver, or a private placement in another silver stock. 

So, if you want some fairly liquid alternatives to cash, in case you don't know what other silver stocks to buy at the time, here they are:
1.  Buy silver.  You can hold silver in an IRA.
2.  Buy CEF.  Central Fund of Canada, ticker symbol CEF.  It's gold/silver bullion fund.  It has 50 oz. of silver for every 1 oz. of gold.  The fund is fairly liquid, you can buy it as easily as any other stock, and is a good cash substitute.  Unfortunately, given the current ratio, about 55% or more of the value is in gold.
3.  Buy a fairly large cap silver stock, with fairly large volume, that is stilll fairly cheap on the list.  Canadian Zinc, Sterling Mining, IMA Resources, and perhaps Mines Management and Cardero are probably the best five candidates.  These all have market caps ranging close to $50-$100 million dollars or more, and are more liquid than many others.  (I used to recommend PAAS and SSRI for this kind of "liquid alternative", but they are no longer as cheap, and the others have now increased in liquidity, and are now much more suitable for this kind of trading.)

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The sheer stupidity of big money not recognizing the value of the world's remaining silver is utterly shocking to the rational mind.  Clearly, bond holders are utterly deceived, and totally unaware of the situation.  All my readers should understand and know that bonds were originally invented to suck the capital and money (gold and silver) away from the people.  Bonds today are a paper promise to repay paper.  What a con game!  Are bond holders conservative and safe?  No, they are fools!  There is nothing safe about holding a paper promise to receive more paper when we have been experiencing hyperinflation for the past two and a half years! 

See my prior essay, " Inflation & Deflation During Hyperinflation "

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And the fund investors who buy paper silver futures contracts instead of real silver are a very odd bunch of fools, for they should realize that nobody can deliver 800+ million ounces of silver promised in the paper contracts and options that does not exist.  It's like the paper longs are betting on the bank run happening, but they all are making sure they get at the end of the long line.  Instead, they could go front and center, where there is an open window available where you can go and get physical silver, and nobody is there.  Idiots!  If you know a bank run is going to happen, and you are actually willing to bet on it, then go and withdraw your money before it is too late!  Don't bet on it happening, which, if it does happen, your contracts will be defaulted on!  Amazingly blind idiots.  Wake up!

See also my prior essay, "The Moral Failures of the Paper Longs"

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How bullish am I on silver?  Here's an interesting way to put it: "60 times infinity" dollars per ounce.

I believe the dollar will eventually be destroyed, likely within my lifetime, hence the "infinity" part.  I believe the ratio of silver to gold may be equal during a spike, when the market realizes that above-ground refined silver is more rare than gold.  Thus, silver may outperform gold by a factor of 60 times better.  Currently, the ratio is 60 ounces of silver can buy one ounce of gold or 60:1.

I may end up selling silver for gold, some at the 10:1 silver to gold ratio, some more at 5:1, and I would sell any silver remaining at a 1:1 ratio, that we may hit during a supply/demand crunch during a paper money collapse.

How we can tell if silver is leading gold, or if gold is leading silver?  IE, which is going up more, faster than the other?  The way you can tell is by looking at the ratio.  If the silver:gold ratio is going up (say, from 60:1 to 80:1), then gold is moving up faster (because it takes 5 more silver oz. to buy an oz. of gold.  If the ratio is going down (from 60:1 to 40:1), then silver is moving up faster.  So, keep an eye on the ratio.
 
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For a list of bullion dealers:
http://www.silverstockreport.com/buybullion.htm

For a list of Brokers that handle Canadian issues and/or pink sheets:
http://www.bibleprophesy.org/SilverStockExtra.html

To track the 163 ticker symbols of the 100+ stocks on this list at yahoo:  (Updated on April 2)
http://www.bibleprophesy.org/SilverStockExtra.html

To learn All about Canadian law, 43-101, about reserves and resources:
http://www.bcsc.bc.ca/Publications/mineral_projects_sept03.pdf

A good web site that hosts posting boards for many of the smaller canadian stocks (that Yahoo! finance does not have boards for) is stockhouse.com
Click on "Bullboards".
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This is a list of primary silver stocks. 

I count a company's ounces of gold as 10 oz of silver. Why? Because I have a very strong positive bias in favor of silver over gold.

Given my bias in favor of much, much higher silver prices, then, to me, the grades of silver are far less important than buying more oz. in the ground.  More oz. in the ground at a lower cost is the most important consideration for me. 

My method is simple. Cost per ounce in the ground. How much do you get (silver reserve totals), and how much does it cost (market cap)? The cost is the market cap divided by the silver reserve totals. Cheaper is better. Buy low, sell high.

Disclaimers, Warnings, and Advice: I have gathered the information below over the course of several months. I believe it is accurate to the best of my ability. I have made mistakes in the data from time to time. I'm human. I have collected the information from public sources such as company web sites and public information found at yahoo.com to get the stock prices. This report in no way guarantees the accuracy of the information below, since the information may change at any time. The number of outstanding shares can change as a company engages in new share issues to raise more capital through private placements, or if outstanding warrants (and options) are exercised and converted into shares, or if shares are bought back. Shares can be consolidated, or split. The number of ounces of silver in the ground can also change, as these are often only estimates. The number can also change up or down, depending on drilling results.

This report is not investment advice.  This report contains information that may or may not be up to date, and may be inaccurate.  I urge you to contact the company and do your own research to verify the information contained in this report.

This report is not an offer to buy or sell any securities.  I am not a broker.  Only your broker can buy or sell securities for you.

I urge you to consult with your investment advisor to determine whether these kinds of investments are right for you. 

I also caution you to be aware of your investment advisor's advice, they are sometimes paid to push things like mutual funds, bonds and other securities that may not be in your best interest to buy.  Some investment houses are short physical metal, and thus, they may attempt to strongly discourage you from buying precious metal or precious metals investments.  I believe that the propaganda machine in support of frauds such as bonds and the dollar is so strong, that they may even believe what they say when they give bad advice to avoid the safety and protection of precious metals.  It is most likely that they simply do not understand the precious metals market as well as you do.

All total estimates of "ounces in the ground" can vary widely. There are "proven and probable reserves" which are the highest category of certainty which is obtained through many drill holes, and then at the least accurate, there are "inferred resources" which are hardest to estimate. Additionally, every miner always has "more silver properties that need to be explored, which probably contain more silver". For the purposes of this report, I have added all those numbers together. It is believed that all these "ounce in the ground" estimates can be profitably mined at $5-6 per ounce silver, or lower. Thus, I believe that when silver trades for $15/oz. or above, that all of these ounces can be mined at a substantial profit.

I may be wrong. (I probably make mistakes in every article, and there have been updates and corrections made each week, especially as prices change.)

Mining is a risky business. You need to be willing to sustain a total loss of your investment for various unforeseen accidents. Silver stock companies can do stupid things to shareholders such as take on debt, or issue more stock at too low prices which reduces the percentage of the company you may own (dilution). Yet, they need to issue shares to raise capital for drilling, and then an even bigger dilution to build a working mine. They may sell YOUR silver too cheaply, or worse, hedge the price of YOUR silver just as it begins to go up if they lock in a price which then proves to be too low if the dollar is destroyed. Mining is a risky business as estimates of assets in the ground can change. There is political risk and environmental risk. They can't franchise the business, are stuck in one location, are subject to government confiscation, or taxes, or union wage negotiations, and corporate looting.

Do your own research.  Be responsible for your own investment decisions.  Again, please, before investing in a mining company, call up the company, and speak either with the CEO or the Investor Relations contact person.

Contact the company.  Check the company web site, read the annual reports, check my numbers, check my math, and email the company. That's what they are there for, to answer your questions, and to speak about the opportunity of the company. Don't trust everything you read over the internet. I am a biased source. I own silver mining stocks. And I'm not a broker, nor an investment advisor. I'm just a private investor trying to make sense of this crazy world, and sharing my information and thoughts on silver companies.

Beware of scammers.  Surely, there are scammers in the mining industry in the past, and there will be scammers in the future.  Remember the fraud of Bre-X.  The new 43-101 compliance laws put in place after Bre-X will not prevent a "certified" geologist from lying if he feels lying will create a better payoff.  The Bible warns, "trust no man", yet at the same time advises us to "cast our bread upon the waters", and to not issue "false allegations" against others.  Physical gold and silver provide the "payment in full" as long as the coins or bars themselves are genuine and not fake.

This report may be copied, and transmitted by other people, and may become outdated by the time it reaches you.

I can't tell you how you should invest your money, of course. The reason is that I don't know how convinced you are of the silver bull market, nor do I know how soon you will be needing the money back, so I don't know how long you can wait to see results, nor do I know how much liquidity you need. Nor do I know the size of the money you have to invest. It is very hard to invest large quantities of money in a small market cap stock.

That being said, my investment strategy seems to be working for me, so far. And so, here is how I have started an initial valuation process of the following silver companies to guide my own investment decisions.

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(Market cap is always converted to US dollars and denominated in US dollars because I divide by ounces of silver, which are also denominated in dollars)

The Market Cap is the usual tool t