wpeC.jpg (1913 bytes)        Tiger Software   -  Bill's Blog   11/2/2007      --  SILVER STOCKS' TAKEOFF --
wpe11.jpg (33251 bytes)      Daily Blog -
     Tiger Software

          SILVER STOCKS:  
     Anyone Remember 1980 when
     Silver hit $50/ounce.


Updated 11/6/2007

   William Schmidt,   - Tiger Software's Creator
   (C) 2007 William Schmidt, Ph. D.  - All Rights Reserved. 

   No reproductions of this blog or quoting from it
   without explicit written consent by its author is

   Send any comments or questions
   to william_schmidt@hotmail.com

        This is not the first recommendation made here of Silver and SSRI.  Here are the earlier mentions of SSRI.
                         October 28, 2007     Evaluating Breakouts: Case Study: The Silver Stock SSRI  SSRI was $39.
                         September 19, 2007   Gold Breaks out with Power as Fed Cuts Interest Rates by 1/2%
                         June 26, 2007     Silver Is Starting To Tarnish.  SSRI slipped to $26 a month later.
                         May 18, 2006    Calling A Bottom Using The Diagonal Lines Command with SSRI.  SSRI was $19.
                         February 2, 2006
- "Hi-Ho, Silver"...>$10/ounce SIL   SSRI was $20.
                         November 29, 2005 - Silver Stocks Are Shining
      SSRI was $17.

                                     Friday AMSPOT SILVER IS NOW OVER $14.50
wpe12.jpg (42264 bytes)
---------------------------- http://www.kitco.com/charts/livesilver.html --------------------------------------------
SLV.GIF (19583 bytes)

                              Anyone Remember 1980 when Silver hit $40/ounce.
                                               BUY MORE SSRI

      Silver is approaching a price breakout from a bullish flat topped, ascending triangle pattern.
  Surpassing 15 will likely start another vertical ascent. See the chart just below.

  You can see how it quickly advanced when it broke out over $8.00 two years ago. The OBV
  Line is rising, which shows ample aggressive buying.  Our Tiger Accumulation Index shows
  lots of blue "big money" buying on weakness.  This means Silver is reasonably tightly held.
  A breakout should yield much higher prices.  Back in 1979, a similar breakout led to an
  explosion of prices and $40/ounce silver for a few days.
      100% of the rise in Silver since 2003 has come in the 4 months following a price breakout.
  The rest of the time Silver is biding its time, backing and filling.

wpe14.jpg (40825 bytes)wpe15.jpg (10599 bytes)                                                      
                   Gold has been capturing the headlines.  But Silver often plays catch up when Gold has been
           booming.   At TigerSoft we watch a relative strength line which compares Silver to Gold bullion.
           That ratio has been downtrending, but a burst of Silver would bullishly break the downtrend
Our TigerSoft red Buys and Sells have garnered a gain of more than 85% in this trading
           range for Silver.  But just as the XAU (Gold Stocks) broke above a year-long trading range
           a month ago and then took off, I think Silver will soon breakout and advance very quickly.  The signals
           that worked for a trading range will cease to be effective.  A Buy and Hold approach will then work well.  
           Seasonal studies show that Silver should be able to rally for at least two more months.   
wpe17.jpg (53450 bytes)
                           SSRI IS MY FAVORITE SILVER STOCK

             Silver Standards Resources, SSRI, has already broken out above a 6 month long resistance
       at $40.  It had a steep advance up from $20 to $40 before entering this trading range.  I would think
       another $20 point rally is quite possible.  That would mean a move to $60.  Of course, if there is
       a rush into silver, SSRI will become a "glamour stock" and will move much higher. I have also
       recommended GLD (Gold Bullion), ABX, GOLD, the Canadian gold stock RIC, at 2.94
      and the Canadian Dollar.

 wpe19.jpg (60923 bytes)      

     The weekly chart of SSRI goes back 5 years.  It proves the stock makes reliable breakouts.  And
  it shows the rise is accelerating.
wpe1A.jpg (48037 bytes)

================== SILVER FUNDAMENTALS ================================

Silver is a consumable industrial commodity.

It's used in computers, cells phones, and electrical relays. This means that as countries like China, India, and Vietnam, and regions like Eastern Europe, become more modernized, the demand for silver will increase.

Silver is also applied in medicine. One little-known use is as a bactericide, a role silver has filled throughout history. Today, medical devices such as catheters and stethoscopes use silver, and every hospital in the western world uses silver sulfadiazine to prevent infections.

• Silver is scarcer than gold.

Gold is hoarded. It's estimated that 95 percent of all gold ever mined is still around. The exact opposite is true of silver: An estimated 95 percent of all silver ever mined has been consumed.

Forty-five percent of all silver mined is burned up in industrial uses. Jewelry accounts for 28 percent, and 20 percent has been consumed in photography. Only 5 percent is in coins.

• Silver supplies are down.

In 1900, it was estimated that the world had 12 billion ounces of silver. By 1990 it had dropped to 2.2 billion ounces. By 2007, the supply was down to 300 million ounces.

Some of the more pessimistic forecasts estimate that the world will be out of silver in about 10 years. This could be catastrophic to the world economy. In 10 years, silver might have as much of an impact on the world economy as $200-a-barrel oil.

(Source: http://finance.yahoo.com/expert/article/richricher/42433 )

============================== FUNDAMENTALS OF SSRI --------------------------------------------

       You will want to find more out about the stock's fundamentals.  Here is a little of what Yahoo
   reports.     Google's Financial section should also be used.

Silver Standard Resources Inc.
999 West Hastings Street
Suite 1180
Vancouver, BC V6C 2W2
Canada - Map
Phone: 604-689-3846
Fax: 604-689-3847
Web Site: http://www.silver-standard.com

Silver Standard Resources, Inc. engages in the acquisition, exploration, and development of silver mineral properties in Argentina, Australia, Canada, Chile, Mexico, Peru, and the United States. It owns a 100% interest in the Diablillos silver-gold project located in the province of Salta in north-western Argentina; the Pirquitas silver property located in the province of Jujuy in northern Argentina; the Bowdens project located in New South Wales, Australia; the Silvertip, Snowfield, and Sulphurets projects located in British Columbia, Canada; the Sunrise Lake deposit located in Northwest Territories, Canada; and the Challacollo silver project located in northern Chile. The company also holds a 100% interest in the Pitarrilla property located in the Durango and the San Marcial silver property located in Sinola in Canada; the Berenguela property located in the province of Lampa in southern Peru; the Candelaria silver mine in Nevada; and the Shafter silver mine located in Presidio County, Texas. It has an option to acquire a 100% interest in the Veta Colorada silver property located in the state of Chihuahua, Mexico. In addition, Silver Standard Resources holds a 55% joint venture interest for the exploration of the San Luis property located in the Ancash Department, Peru. Further, the company has an exploration and development agreement with Vista Gold Corp. to explore silver resources hosted in the Maverick Springs gold-silver property in northern Nevada. It has a strategic alliance with Minco Silver Corporation to pursue silver opportunities in the People's Republic of China; and an agreement with Esperanza Silver Corporation for the exploration of silver projects in Peru. The company was incorporated in 1946 and is headquartered in Vancouver, Canada.

================================= SSRI CEO OUTLOOK =======================================
Outlook on Silver and Silver Stocks with Robert A. Quartermain of Silver Standard Resources

What is your outlook on silver?

In regards to my outlook on silver I think it continues to remain good. Key drivers in the silver market are its uses in electrical and industrial applications. For the first time ever last year, more than 50% of silver consumption on a global basis was in electronics and industrial applications which meant that there was less consumption in its more conventional uses such as silverware, jewellery and photography. One of the driving forces of that is the use of silver as a catalyst and as a result of having this quality, it is used in the oil & gas industry, it is used to produce plastics and also in many high temperature applications. As well, if you apply a current to silver it doesn't spar k and as a result of this it is used in a lot of small electrical connections such as those used in palm pilots and things of that nature where the solder incorporates silver. As a matter of fact in July of 2007, the European Union banned the use of lead in solders and some of the potential replacement that's being used (that we are seeing from anecdotal information) would be silver in solders. Solders of course are used in light switches that you use in homes and so we are starting to see a bit of an uptake in silver demand in those applications. Silver is also used in photovoltaic cells, in solar panels and a wide variety of everyday uses such as cell phones and computers. So I think that as we see the growing economies in both China and India and the movement there towards consumer goods, particularly cell phones and other communication devices then we should continue to see consumption growth in electrical and consumer applications of silver so the outlook for the commodity remains bullish.

What is you outlook for silver stocks?

Regarding silver stocks, they are somewhat dependant on the market. Till date the price of silver has gone from $5/oz level 3 to 4 years ago to its current $13/oz level.

Stocks which are focused on silver such as ours and our peer group have enjoyed an increasing share price because of the leverage we have to the commodity from our project base. Investors should also keep in mind that market fluctuations may sometimes override movements in the stock relative to silver price. We are currently coming into the season where physical demand picks up particularly in India due to their wedding as well as religious festival that occur in the fall and this often results in increased seasonal consumption of silver. India in the past has been a fairly large consumer of silver both from a jewellery point of view as well as an in investment.

Later in October there is a conference organized by the silver institute in China which I'll be attending and one thing t hat the conference focuses on is Chinese consumption of silver. Over the last few years the amount of consumption of silver jewellery in China hasn't been comparable to that of India, so if we start to see that kind of consumption pick up in China, it will result in an incremental increase in demand and that will certainly be reflected in price of the commodity and then onto silver share prices.


Press Releases

Source: Silver Standard Resources Inc.

Nov 01, 2007  
TORONTO, ONTARIO--(Marketwire - Nov. 1, 2007) - Valencia Ventures Inc. ("Valencia")(TSX VENTURE:VVI) is pleased to announce that it has entered into an agreement with Silver Standard Resources Inc ("Silver Standard")(TSX:SSO)(NASDAQ:SSRI) to acquire an 80% interest in the Nuevo Juncal Silver property. The Nuevo Juncal property is located approximately 125 km southeast of Valencia's Cachinal Silver Project in northern Chile. Valencia has focused its corporate development effort in the region surrounding the Cachinal project to utilize its local expertise and knowledge to build on the resource the Company is establishing at Cachinal.

Silver Standard and Esperanza Announce Further High-Grade Results at San Luis

Tuesday September 18, 5:00 am ET

VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--Sep 18, 2007 -- Silver Standard Resources Inc. (Toronto:SSO.TO - News)(NasdaqGM:SSRI - News) and Esperanza Silver Corporation (CDNX:EPZ.V - News) are pleased to announce more results of ongoing diamond drilling at the San Luis high-grade gold and silver joint venture property in central Peru. 

Infill drilling on the Ayelen Vein continues to confirm high-grade gold and silver mineralization and to define the mineralization before the commencement of an underground exploration program, which is planned to begin later this year, subject to receipt of permits. Significant drill results from the current program include:

- in drill hole A-SL-098, an angled hole drilled close to drill holes A-SL-016 and A-SL-018 (both of which intersected very high-grade values), a 26.2-foot interval averaging 2.05 ounces per ton gold and 27.2 ounces per ton silver (8.0 meters averaging 70.3 grams per tonne gold and 932.0 grams per tonne silver).

- in drill hole A-SL-087, an angled hole drilled beneath hole SL-06-085 toward the north end of the vein system, a 67.6-foot interval averaging 0.21 ounces per ton gold and 9.0 ounces per ton silver (20.6 meters averaging 7.2 grams per tonne gold and 309.1 grams per tonne silver).

High-grade mineralization within the Ayelen vein has been identified over 650 meters of strike length and exploration is continuing to define the structure to the south. The high-grade mineralization has been found for a depth of up to 225 meters, from below the top of the ridge down to the 4,350 meter level. Recent infill drill results for the Ayelen Vein are summarized below:

Top Holders:

Holder Shares % Out Value* Reported
ANCHOR CAPITAL ADVISORS, INC. 2,039,760 3.27 $70,106,551 30-Jun-07
MFC Global Investment Management (U.S.), LLC 1,459,711 2.34 $50,170,267 30-Jun-07
ROYCE & ASSOCIATES, INC. 8,600,900 13.81 $295,612,933 30-Jun-07
BLACKROCK INC. 893,012 1.43 $30,692,822 30-Jun-07
BlackRock Advisors, LLC 784,090 1.26 $26,949,173 30-Jun-07
Public Sector Pension Investment Board 492,700 .79 $16,934,099 30-Jun-07
VAN ECK ASSOCIATES CORPORATION 465,382 .75 $15,995,179 30-Jun-07
Summit Global Management, Inc. 430,790 .69 $14,806,252 30-Jun-07
AGF FUNDS INC 406,900 .65 $13,985,153 30-Jun-07
TD ASSET MANAGEMENT, INC 381,565 .61 $13,114,389 30-Jun-07
==================    Silver Stocks as Investments  =======================================

"The total value of all the paper money and bonds in the world is about $100 trillion, and all the gold ever mined in all of human history is just under about 5 billion ounces. So, world money divided by world gold gives a figure of $20,000 per ounce! ...Annual gold supply from mining is about 2500 tonnes. With 32,151 troy ounces per metric tonne, that's 80,377,500 ounces of gold. I estimate that if China bought that much gold, the price of gold would jump up about $500/oz. to about $1,200/oz. At $1200/oz., that would cost about $96.5 billion, which is less than 10% of China's U.S. dollar bond holdings. A prudent diversification into Gold on China's part could cause the dollar to lose 50% of its value overnight....
"he historic price ratio of silver to gold shows that about 10 ounce of silver would buy one ounce of gold, a 10:1 ratio. Recently, the ratio is about a 50:1 ratio (with silver at $13/oz., and gold at $650/oz.) As the silver to gold ratio returns to historic values, from 50:1 to 10:1, you may make over 5 times more money investing in silver, than gold!

Silver prices may rise to exceed the 10:1 ratio, for the following reasons:

More than all of the silver produced by the mines each year is consumed by industry, which leaves little to no room for substantial investment demand. The tiniest bit of investment demand will drive prices sky high.

Supply prices aren't going anywhere. Higher prices in silver may not cause increased supply (production). Why not? Because most silver is produced as a by-product of mining gold, copper, zinc, or lead. Thus, higher silver prices will not substantially increase the amount of silver mined each year. In 1980, when silver prices went up to $50/oz., less silver was mined than in 1979!  (Source: http://silverstockreport.com/ )
 ====================== Other Silver Stocks =========================  

Hit Counter