Major Discovery by Junior Producer to Harm Silver Price?
Posted: Fri Apr 01, 2011 5:58 amA bit of investigative reporting, says silver guru Jason Hommel, uncovers the real reason behind the seemingly meteoric price rise of mid-level silver producer First Majestic Silver in recent months. First Majestic, traded on the American Stock Exchange under symbol AG, has climbed faster than any of its kin in the smallish group of junior silver producers and explorers. "And there's a good reason for that," states Hommel, mirroring the advice given subscribers of BullionBullsCanada.com by subscription newsletter investment writer Jeff Nielsen. Per Nielsen, "I used to favor Great Panther, but clearly First Majestic will outperform going forward." This is due to recent developments of drill results showing incredible silver-bearing veins in the region the company refers to as the Bastante Mas Plata field. This field, when developed and brought into production will be capable of producing fifty million ounces a year of silver, making this recent discovery the largest pure silver mining strike in years. States Emilio Dinero, one of the directors of the company, "this is as big as Comstock, we're all going to get rich." April Fulze, company secretary, stated "even I am acquiring shares through our profit-sharing program. My 401k is growing like gangbusters."
Although I do like the prospects of this company, please do your own due diligence... it could all be hype, after all. Some people will believe anything. Could this much silver coming into production ruin the supply demand ratio?
Although I do like the prospects of this company, please do your own due diligence... it could all be hype, after all. Some people will believe anything. Could this much silver coming into production ruin the supply demand ratio?
Nice beaunderos...keep at it...we love it....
