Searchlight Innovations Inc T.SLX

RE: Ratio of Major Silver Miners to Silver

[MudCreeker]

The fact that even major miners haven't risen much with the run up in silver and gold prices indicates that the market wasn't convinced that the recent rises in pm prices were sustainable.   Normally the miners move more than the metals.

The current spot price only matters for today's production - the value of a mining company depends on the long term average price of pms over the life of the mine.  For exploration companies, it is an even longer term future averaqe price that really matters.  Once the market comes to the realization that long term the prices of pms are not going back to where they were two years ago, and that therefore pm miners are going to be highly profitable for the foreseeable future, then the share prices will rise significantly.

Of course, the current volatility just makes the future prices of pmseven less predictable, especially to people who focus on the pricehistory rather than the fundamental forces driving the price.