RE: RE: RE: Silver on a rallyActually, here's a better post from Nosleep (hope you don't mind, Nosleep), also from the USA board:
JayTaylor in the Jan. 13, 2009, edition of Gold, Energy & Tech Stockstells readers to sell SNS Silver Corp., recently 12 cents.Mr. Taylor said buy on Feb. 15, 2007, at $1.90. A $1,000 investment at$1.90, sold at 12 cents, would yield a loss of $957. Mr. Taylor hasdecided to "clear the deck" of all silver stocks because of thepowerful deflationary environment in the United States. He believesthat policymakers will not be able to overcome this deflationaryenvironment, no matter how much monetary and fiscal stimulus they pumpinto the economy. The newsletter writer points to the Great Depressionas an example of when a stimulus package did not work, noting that debtand other economic problems were much less severe during the GreatDepression than those faced today. Mr. Taylor expects gold stocks to dowell this year, but does not expect silver stocks, like SNS Silver, tofollow gold's lead. Accordingly, the newsletter writer sees nocompelling reason to own silver stocks at this time.
SNS now .20ish, up nearly 60% since that sell suggestion...and...
JayTaylor in the Nov. 18, 2008, edition of Gold, Energy & Tech Stockstells readers to sell their U.S. Silver Corp., recently 3.5 cents. Mr.Taylor said buy on Sept. 16, 2008, at 14 cents. A $1,000 investment at14 cents, sold at 3.5 cents, would yield a loss of $770. Mr. Taylor hasnothing to say about the company in the newsletter. He simply slips thesell into the back of the newsletter under "closed positions."Elsewhere in the newsletter, Mr. Taylor notes that before thisdisastrous year, his portfoliowas up more than threefold. The newsletter writer admits that to saythat this has been an awful year for him and his portfolio is amonstrous understatement. Mr. Taylor thinks that 2008 may be the worstyear he has had in the 26 years he has been writing Gold, Energy &Tech.
US silver was at it's VERY lowest on Nov 18th, whichaccording to this article was the day of the letter release tellingreaders to sell it. Since then it's moved up to .14, or a 400% move.
Looksto me like playing contrarian is a pretty good idea, it's not onlythese 2 stocks either, many many more that were beaten down that hesuggested selling quickly recovered after the fact. I mean Taylor gavea "buy" on US silver on October Sept 16th, 2 months later it's a sell.
Nobodycan ever be perfect, and no doubt the suggestions taylor made afterunloading everything and moving heavy into gold has seen some nicereturns also, but it simply goes to show that no matter how close youare to the business and mining industry it's nearly impossible to makethe right calls all the time.
Tough market ;-0