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Path: utzoo!linus!decvax!harpo!seismo!hao!hplabs!hpda!fortune!kiessig
From: kiessig@fortune.UUCP
Newsgroups: net.invest
Subject: Re: SILVER - (nf)
Message-ID: <1308@fortune.UUCP>
Date: Tue, 26-Jul-83 19:17:45 EDT
Article-I.D.: fortune.1308
Posted: Tue Jul 26 19:17:45 1983
Date-Received: Wed, 27-Jul-83 13:13:25 EDT
References: <5727@sri-unix.UUCP>
Organization: Fortune Systems, San Carlos, CA
Lines: 27


	Silver WAS a better investment than gold through the latter
half of last year.  Lately, though, the gold:silver ratio, and other
indicators, seem to be saying that they are as good as one another.
I would still favor silver a little over gold, but not much.  If you
decide on investing in the metals directly, I would suggest coins.
Much more liquid than other forms.  There are also things like
certificates, etc., but they have problems.

	If you're considering investing in precious metals, may I
suggest you try mining shares?  There are several reasons for this.
If a company can mine gold, say, for $300/oz., and gold is priced
at $400, they make $100/oz.  Now, if gold were to go up to $500/oz.,
and you were invested in the metal itself, you would make a 25%
profit.  However, the mining company has doubled its profits, since it
is now making $200/oz. profit.  The stock price normally would reflect
this.  Also, there are a number of mining companies with listed
options.  This gives you a chance to add some extra leverage when
the time is right.  Doing that with the metal - in the commodoties
market - is pretty risky (in other words, you can lose more money
than you've invested, and you may not even be able to sell if things
get bad, and you're subject to margin calls, etc.).

	I have some suggestions on various mining companies, if you're
interested.

Rick