The Silver Bull Is Back

Silver Stock Report

by Jason Hommel, May 4, 2004

Today, on May 4th, 2004, the following 16 silver stocks moved up more than 10%, and had double-digit percentage gains.

    COEUR D’ALENE……………………….CDE +12.61%
    WESTERN SILVER……………………..WTZ +13.73%
    TUMI RSCS LTD………………………..TM.V +21.50%
    SILVER STD RSC……………………….SSRI +12.46%
    REDCORP VENTURE…………………..RDV.TO +14.29%
    PLEXMAR RES INC…………………….PLE.V +19.05%
    SILVRCRST MINES……………………..SVL.V +10.10%
    MINES MGT……………………………..MGN +15.05%
    FORMATION CAP………………………FCO.TO +11.39%
    O.T. MINING…………………………….OTMN.PK +17.65%
    ECU SILVER MINI……………………….ECU.V +17.54%
    AMER BONANZA……………………….BZA.V +16.22%
    CHESTER MINING………………………CHMN.PK +27.27%
    GR PANTHER RSC………………………GPR.V +24.14%
    ENERGOLD MINING……………………EGD.V +10.91%
    SILVER BUCKLE…………………………SBUM.PK +16.67%

I believe this was a significant turning point for the silver market, and as such, I felt I had to send out this notice.

I hope my readers did not miss today’s great move. I hope that a very few of my readers were shaken out and discouraged by the recent manipulation of the silver price down to $6.

Did you realize that the bullion banks are now covering their shorts, reducing their short positions, and are now increasing their long positions in silver at $6/oz., as can be seen in the COT reports?

www.cftc.gov/dea/options/deacmxsof.htm

If the commercials are reversing their positions, and they are, it means several things very profound.

The commercial bullion dealers who are manipulating the price to the downside are giving up! They may be winning this battle down from $8.40, but they are losing the war! For the most part, they are covering at a loss at $6, since most of their short positions have existed since the $5 level and lower! And if they are buying at $6, it indicates that those who manipulate the price to the downside think this is a bottom. And so, it will likely be a bottom.

Silver stocks are now the safest investment that I know of, with also the greatest upside potential. The downside from here is minimal, as $6/oz. silver appears to be a bottom. The upside for the stocks remains huge.

Right now, most of the silver exploration companies are flush with cash from private placements, debt free, and are in the process of drilling or looking to hire drillers. Thus, the stocks are less risky than in the summer of 2003, when many explorers had no cash at all, and were at risk of going out of business.

Those people who own the silver stocks when drill results will be released over this summer, and as silver prices climb right back up and make new highs, will stand to gain the most. Perhaps gains of 100% – 200% for the entire sector will be modest.

Overall, my list of 167 stock symbols in the silver sector was up 5.7% for the day.

If you would like to build yourself a watch list of silver stocks in the silver sector, it’s really easy to do:

Go to yahoo.com. Click on yahoo finance. Take a minute to register. Sign in. At the top of the page, click “create” a portfolio. Choose “track your current holdings”. In the large box, copy and paste the following symbols Use your mouse to highlight the text, then use control-C (or right mouse click) to copy, control-V (or right mouse click) to paste. (Updated as of April 2)

XAGUSD=X BHP GMBXF.PK BVN HL ABX CDE IPOAF.PK SIL ECU.V ECUXF.PK GRS GAM.TO FSR.TO FSLVF.PK CFTN.PK MFN MFL.TO PAAS KBR.V KBRRF.PK HGM.V HOGOF.PK WTZ WTC.TO TM.V TUMIF.OB CZN.TO CZICF.PK MGR.V MGRSF.PK SSRI ORM.V OREXF.PK SRLM.PK RDV.TO RDFVF.PK HDA.V PLE.V EXR.V EXPTF.PK FAN.TO FRLLF.PK ADB.V ADBRF.PK SVL.V STVZF.PK CHD.V CHDSF.PK MGN ASM.V ASGMF.PK GGC.V GGCRF.PK UNCN.OB IMR.V IMXPF.OB EZM.V EZMCF.PK CDU.V CUEAF.PK AOT.V ASOLF.PK MCAJF.PK FCO.TO FCACF.PK TVI.TO TVIPF.PK FR.V FMJRF.PK NPG.V NVPGF.PK SPM.V SMNPF.PK MAG.V MSLRF.PK IAU.V ITDXF.PK MMGG.OB OTMN.PK CAUCF.PK MMM.TO MMAXF.PK MAI.V MNEAF.OB EDR.V EDRGF.PK BZA.V ABZGF.PK DNI.V DMNKF.PK EXN.V EXLLF.PK BCM.V BCEKF.PK NJMC.OB CMA.V CRMXF.OB KG.V KDKGF.PK CBE.V CBEFF.PK SML.V SMLZF.PK NBG.V NBULF.PK SDR.V SDURF.PK CHMN.PK EPZ.V ESPZF.PK GNG.V GGTHF.PK MMG.V MMEEF.PK SHSH.PK KRE.V KREKF.PK EGD.V EGDMF.PK PCM.V PAOCF.PK LEG.V LEGCF.PK BGS.V BLDGF.PK AUN.V AUNFF.PK SRY.V TUO.V TEUTF.PK ASLM.PK BBR.V BBRRF.PK ROK.V ROCAF.PK CBP.V CPBMF.PK TBLC.PK PDO.V ATN.TO AUN.V LEG.AX MAR.AX MTB.V MSLM.PK SBUM.PK FWGO.OB MERG.PK SMLM.PK SIBM.OB SIVE.PK MEMLA.PK SLSR.PK SDSI.PK HRNS.PK GPXM.OB GSPG.OB AAG.V ANMCF.PK LSM.V LASCF.PK RRM.V LMA.V

The first symbol, “XAGUSD=X” lets you track the silver price. These symbols are in the rough order they appear in my free weekly silver stock report, so this way, you can follow along what’s taking place in the silver market on a daily basis. Also, you can easily access charts for any of these, such as 1 day, 5 day, 3 month, 6 month, 1 year, 2 year, or 5 year charts. You will love being able to access this information so quickly from your own continually updating “silver stock page”.

You will also be able to see, in one place, right at the end of the list, the news releases for each stock on the list (if the company has their PR act together).

Here is how to track the price of your Pink Sheets stocks. The PK symbols do not update volume or price too often, if at all. This is often due to the laziness of the pink sheet dealers. To get the price and volume of your stock, look up the Canadian symbol. Then, multiply the Canadian price by the exchange rate, which today is about .73. That will give your US dollar price. Then, add about 1% for commissions for trading through the pink sheet dealers to get an idea of what you might pay.

I update this list of ticker symbols about once a month. Check the free weekly report at silverstockreport.com in the archive for updates. Or, if you would like to receive my report in email, please sign up at silverstockreport.com

Jason Hommel