Norra Metals Corp V.NORA.H

Silver

[tast22]

The fact that OK is described as a primary silver mine is bad news and good. It basically means that silver when produced will create more wealth than any other metal which would be byprodcts even if the amount (tonnage) of ore produced by another metal is significantly more.i.e. it comes down to $ not quantity. The problem with silver is that it has been so badly manipulated over the years that even with the sharp rise in price it is grossly undervalued compares to say gold. Generally, you get more bang for your buck producing gold. Many analysts especially Sprott are convinced that the price ratio of about 40/1 gold to silver cannot sustain itself as producers switch to increase to gold production at the expense of silver. Of course the byproduct of many gold mines is silver which keeps silver supply often also goes up. However, there are less and less primary silver mines around now and silver production has been on the decline.This should mean  higher prices although who knows what demand will be if China goes in the tank!

So is it time to buy a silver mine? My answer, it is probably better than buying a gold mine because the upside is considerably higher especially if CAPEX is relatively low. Every mine stands alone and must be assessed on it own merits. My DD suggests OK would be very profitable for years at $35+ silver which is probable, and likely sustainable as China moves to stimulate its slowing economy.