Friday, March 14, 2008

Canadian silver bug stock update

Silver and Gold have done quite well this week fighting off what looked to be the beginning of a correction to end the week at $20.67 and a new record of $1002.50

Now you’d expect this to have some great effect on stock prices but yet again another financial problem, ie. the Bear Stearns bailout tainted the entire market and probably led to the panic selling of miners as a means of freeing up liquidity.

So how did I do this week in the market?

Honestly not as well as I would have expected considering this weeks prices, various stocks bounced around without direction and few varied enough to make a big difference in my portfolio with a few exceptions.

One of the big surprises this week was the lack of stamina by Marifil mines
which after reporting more intercepts of platinum did nothing positive all week and then put in a sharp 10% loss on Friday.

Has $1000 gold buried the Platinum story for now?

Another surprise was my biggest holding Silver Corp. which also weakened into higher prices, what he hell is that about?
Mine collapses, financial troubles, bad cores I can understand and deal with but higher metal prices and lower equities drive me to drink, mmm drink, don’t mind if I do!!!

My biggest gainer for the week and number two for the year behind Great Panther
was Quinto mining with its substantial iron property in Quebec and prospective projects in copper, nickel and ultra pure graphite.

Yes iron prices have spiked but silver and gold have been climbing for a several years, have made new decade or all time highs, shares are still off 1 year highs and yet a base metal play is my best pick, what’s wrong with this picture?

Now I do believe that Quinto will become a $4-5 dollar stock but it’s maddening that the precious metals I have the most faith in are doing the worst despite new higher prices, I expect it’s due to the lack of liquidity in the markets for mine development and some extreme shorting but it still irks me.

The last time I had a stock behaving this way was Lionore which I bailed out on after making about a 350% gain only to have a buyout announced days after that would have netted me another 100% +- dohhh!!!

I recommend you read up on Quinto Mining I don’t recommend you actually buy it, but do have a look at it and decide for yourself what a company with 302 million tonnes of iron
at 28.47% is worth when there are still a series of cores and adjacent properties to account for. Add in the Graphite, and the titanium properties which I think are their most viable secondary plays and then tell me what you think!

Over all I was slightly down on mining this week and but my energy holdings more than made up for it. Junior miners will have their day yet.

If you have input on my various stocks, feel free to add honest comments or questions, over exuberant pumping however will be deleted, that's not what these posts are about.


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