You can now view interactive charts from 24hgold.com on this website! This will keep you in touch with just a few mining stocks, which have been carefully selected. Just visit our: portfolio

Watch Great Panther (TSX:GPR)

We are a shareholder of this company for almost a year now. Great Panther is primary silver producer. We knew this company was a solid buy, and you can still buy into this company at about the same price as in September 2009. Please read the year report of 2009 via this link The report confirmed to us that Great Panther will gain much value the coming years. Despite the fact that the price of silver has gone up quite a lot, the price of this stock hasn’t, that just means there is only more upward potential in share value.

How does CashInfo.org select great investments

CashInfo.org only buys stock with the principals of value investment in mind. We are a big fan of Warren Buffet, one of the richest persons in the world and a true value investor. And remember that Warren Buffet has bought a lot of silver in 1997 at $ 4,96 per ounce, and he holds on to it. This also means that once we bought into our carefully selected companies we intend to hold them for as long as possible. Only when a stock is massively overvalued we might be tempted to sell. Otherwise, we hold on to them for many years to come! We read every quarter/year report there is in the companies we own and the companies we follow.

The new Selection

Starting four months ago with started with 39 companies on our list, after hard labour we narrowed the list down to a 4 company short-list. We will probably buy stock this coming week, the moment we do we will reveal the name of the lucky company at once. The gold price has become quite predictable this summer, I say we reach a new all time high on Monday, than within 48 hours selling pressure (and price manipulation) will cause a sharp decline back to the $1230 range. This will be the moment we buy.

Going short

It’s tempting to consider other trading instruments with this volatile market. When you go short whenever, or a near all-time high is reached you provide a hedge for your mining stock, and since it it most likely to go down again after each upward spike it might be fun to experiment a bit. So last week we bought a sprinter Gold Short of the ING bank in the Netherlands noted on the EuroNext options exchange in Amsterdam, there are many leverage products alike this one offered by other banks in other countries, please read their information thorough since the product might differ. Sprinters are leveraged products that allow investors to benefit from accelerated returns generated by the price movements of their underlying value. Sprinters are available across asset classes and ING commits to offer Sprinters on a broad range of underlying values. In addition to attractive spreads, ING strives to consistently provide an excellent level of service to its clients.  Buying June 18 @ € 6,30 and selling June 24 @ € 8,33 hope I can try this trick again this week.

Absolutely bullish on gold and silver!
The gold price is over the $ 1000 mark (again) and while I’m writing this post we are experiencing a very large upward spike!
I think that gold will rise further till at least the end of the year, than it should have reached the   $ 1080 /1090 mark.
Than two things can happen: 1. a drop back to the $ 1000 mark again or 2. a price explosion, where gold can easily go to $ 1500 or even $ 2000
Silver is being highly undervalued, today the gold/silver ratio is about 70, before 2008 the ratio was in the 40-50 range. Historically the ratio is about 16, and that number makes much more sense than the ratio’s we see nowadays.

There is about 16 times as much silver in the ground as there is gold. Then why did we loose this ratio? This can be explained by silver loosing its monetary status to gold in the 19th century.  During the 1970’s the value of silver was once again proven because the inflation was very high. The price went from a few dollars to $ 50 per ounce. If we correct that price to inflation, silver should cost $ 150 per ounce today! It should be noted that there was an attempt to corner the silver market by the Hunt brothers which caused the price to sky-rocket. The plan failed on Thursday 27 March 1980, this day became known as Silver Thursday. Also the leverage of the silver price to gold had a very negative effect during the 1980’s. In 1992 silver hit a historical low of $ 4,73 per ounce. Not long after that Warren Buffett bought a large quantity of silver. You can find some interesting charts here.

Many investors have considered the industrial aspects of silver as negative. What they forget though, is that silver is being consumed, and gold isn’t. Every year new applications for silver are being discovered. For instance, there is probably silver in the screen you are looking at right now!

The money presses are running wild in both the US and in Europe. Normally money is created by central banks in order to keep track with economic growth. We can’t really say the economy has seen much growth lately. Inflation is inevitable, so the chances of silver prices going berserk again is very plausible. Have a look at a very nice chart I found. The chart shows the silver price over a period of 600 years, corrected by inflation and the gold/silver ratio. (chart from 1998)

Click to enlarge