MINCO gold and silver explorer.... the facts

PP : That's a bold statement. Thought I'd offer a few thoughts.

I am not doubting that physical pm's will do well. I have had gold & silver since last year. Fundamentally, leveraged PM miners will do better than the metals if their cost base increases more slowly than the price of their product. Silver has doubled in the last 3 years.


The thing is, that costs had already been increasing with the price of oil and labour, making further mining developments less worthwhile and so there have not been enough of them. Now that metal supplies are being squeezed, and there are fewer sources of metal, the prices are catching up. Producers will be able to leverage this against their costs. Those already producing have done quite well this year, but the juniors have lagged behind, possibly because of fear that the metals prices may fall back. As metals prices look to be building a higher base, this should pique the interest of investors in projects such as Laguna which are nearing production as they offer better value.

In the case of a general market correction - if this causes people to sell a company despite its fundamentals, then that is a good thing if you are a buyer, is it not. The junior miners are, IMO now very good value, and it is only a matter of time before we start to see the cash flowing into the sector again. Here's a recent article on the subject:


Also, while buying physical and stashing away somewhere is a good idea, it's not a good idea to invest all your wealth in it, as with any investment.