Just curious if any of you are invested in any silver/gold mining companies? There's a couple that I was looking at and just wanted to get some thoughts, I was looking at FSM and GPL Thanks in advance...
took the plunge i got into SilverCorp Metals (SVM) a little while ago. seemed like a good bet. up 14% in first ten days then back to even, now up about 6%. just something to do. really should get into more than one to spread the risk/reward. havn't looked into the 2 you list. focus on where they do most of their mining. lots of political headwinds in many countries with permit fees, royaltys and tax issues that can kill profits.
The problem historically with gold stocks has been two fold. One, since they are such a contra asset they are overbought versus their return for risk management. This mean if you are only buying for their return frequently its a bad buy. Second, most of these firms have a history of not returning excess profits to shareholders in good times, but wasting it pursuing ill conceived expansion. Because of these two reasons I do not invest in strict gold stocks. I have some exposure through consolidated mining companies or companies that mine gold as a byproduct, but never a straight gold mining play. Just my opinion.
