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Silver Dragon Resources Inc SDRG

"Silver Dragon Resources Inc is a mining and metals company focused on the acquisition, exploration, development, and operation of silver mines in proven silver districts globally. It is a mineral exploration company engaged in six properties located in the Erbahuo Silver District in Northern China namely, the Dadi, Laopandao, Aobaotugounao, Shididonggou, Yuanlinzi and Zhuanxinhu properties."


GREY:SDRG - Post by User

Bullboard Posts
Comment by fcomon May 21, 2010 10:45pm
415 Views
Post# 17123782

RE: anyone know why this fell off

RE: anyone know why this fell off
Sure, the entire PM sector is being hammered to maximize Banker profits for sold calls in the COMEX options markets.  Entirely illegal, but that's what we have to work with.  SDRG is simply getting caught in the downdraft.  Months from now you will view this as very bullish action as the way is being paved for the next significant advance.

Once options expiry passes on Tuesday, the entire PM sector will move substantially higher.  I expect SDRG to be trading back above 30 cents by next Friday, perhaps higher.  Next month gold will outperform silver since June Gold is a major delivery contract month whereas June silver is not.  Its no accident that gold and silver delivery months are staggered throughout the year except for December.  It enables the Cartel to trade into one while trading out of the other.  This is also why December is historically one of the strongest months for the PM sector since December is a major delivery month for both markets.

The key (perhaps only) consideration for a stock trading at these prices is whether or not the company is going to go out of business causing the shares to become worthless.  Do believe that the risk of this for SDRG is pretty small as they seem to be developing their business quite steadily.  Not much you can do when the entire sector is being trashed - but survive.  At these and lower prices, SDRG shares are a steal.  Seems pretty clear that their properties have substantial resources.  That's the bottom line. 

I also view the fact that they are not producing and selling significant silver quantities at this time as a positive since the associated operating costs would increase the risk of going out of business in the event silver prices temporarily decline.  Silver fundamentals strongly argue for substantially higher prices in the future.  The question is when.  Better for them to survive by operating on a shoe string budget until the sector explodes skyward.  I'm sure, in time, this will occur - it has to - the only question is when.

Unfortunately, we live in a fascist country where the banks are basically in control.  You can hope that that changes - but who really knows ? 

Bullboard Posts