by Jeff Nielson, Bullion Bulls:
Here’s a new clip from SGT Report, which I’m posting for a few reasons. First, there is some interesting news/analysis on the precious metals market (as usual), and the silver market in particular.
But the second, and more relevant reason for us is that near the end of the clip, Sean “discloses” a new position he has just opened a new position personally with Mining Good-Guy, First Majestic. Since we’ve just begun talking again about the miners here recently, I thought that there would be several people interested in the fact that Sean just bought in — and also bought some shares of First Majestic’s new financial company First Mining Finance.
As he noted himself, he didn’t buy these shares anywhere near the “bottom”, paying roughly $16/share. But as he also notes, even $16/share is a bargain for this fine company.
FM is now producing 20 MILLION ounces of silver per year, meaning that every $1/oz increase in the price of silver adds $20 million in profits to First Majestic’s bottom-line — and that’s not chump-change.
Naturally other people could make similar observations with regard to junior silver miners they hold shares in, although likely not on the same scale, as First Majestic is now a fully mid-tier silver producer (and still growing).
This is why the silver miners offer even more upside potential than the gold miners — although along with that comes added risk, since when the banksters ATTACKthe sector, they always attack the silver even more viciously than the gold market.
I`m sure that many people will be interested in this one, and good on Sean for going public with his new investment!!
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