RE: RE: RE: RE: Political riskCavalliere I think what you are seeing as a discount in the stock is really the manipulation of the Miners by the Hedge funds. SSRI has traded as high as $50, Most of our assets are in Brazil and Chile. Both countries with a long history of mining and fair treatment for the companies that invest. You may have noticed that Boliva has backed off its nationalization plan as the employees rioted. They know that state control and meddling is a disaster for their employment. Venezuela a current exception.
Great Post by Trader Dan. @ TraderDanNoricini Notice the comments on the Mining Company CEO's....sound familair Dan knows the manipulation is extreme. He is calling out the CEO's to stand up for their industry, company and shareholders. Trust me YRI is the poster child for this continued picking on by the bullies.,...but it is industry wide. SSRI which I have owned for years is also a bully victim. Strength in numbers. A couple of good comments at the end of his post. You should have this bookmarked for regular reading.. (IMHO) for what its worth
The large cap mining stocks continue to get obliterated as evidenced by the XAU which is now perched precariously above a critical support level on the weekly chart. The entirety of the gains of 2011 have now been erased by this continued ratio spread trade which will not let up.
To give you an idea of how obscene this trade has become, when the XAU was trading at today's levels back in January of this year, gold was trading in the low $1300's!
What is astonishing is the silence of far too many mining company CEO's while their stock value is getting systematically destroyed. A bounce in the metals should bring some valued based buying into the mining shares particularly at these levels.