Thursday, February 25, 2010

Are Silver Wheaton (NYSE:SLW), Silver Standard Resources (NASDAQ:SSRI), Endeavour Silver (AMEX:EXK) Lost Causes?

Future of Silver and Gold Mining Companies

Some are out there talking as if companies like Silver Wheaton (NYSE:SLW), Silver Standard Resources (NASDAQ:SSRI) and Endeavour Silver (AMEX:EXK) are going to start to slow down in growth, largely based on assertions and innuendo rather than facts.

We can't continue to make investments decisions maybes or could haves, rather we must base it on solid data and evidence if we want to do well with our commodity investments.

While it may be a good time to take a breather and look at the overall economic landscape, there's no way I would sell my silver or gold investments at this time, although it would depend on what I was investing in, such as silver or gold futures or specific silver or gold mining companies, or maybe even physical gold or silver.

There is this foolish idea floating around that we have to put more money into equities just in case we actually enter into a recovery. That's somewhat stupid to me, although, again, a specific company could do well in the current economic and investment climate, like many have done throughout the years.

But to assert our time of risk is over and we should start to move our money into equities in general is just plain dumb. We are far from being over risk, and we are in more dire straits with sovereign risk with the PIIGS and consumer confidence declining, along with a so-called economic recovery with no jobs being created.

Even the talk of future interest hikes by the Federal Reserve is irrelevant. Ben Bernanke has already stated he's going to hold things where they are for some time to come, and even if you don't trust Bernanke, he's right in that he will have to do it, as he and the Federal Reserve are caught in a trap they can't get out of, and he's going to bide his time in hopes something will emerge which will help him and the Federal Reserve.

Silver and gold companies like the ones mentioned above are far from running their course, and it's highly unlikely they'll stay down for any long period of time going forward, although there will always be market corrections.

Future of Silver and Gold Mining Companies

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