A Silver Miner to Avoid for Now

silver investing
Written by Mike Hammer

Mining companies are essentially leveraged plays on whatever they mine. After all, a miner makes money (or loses money!) on the difference between their all-in sustained mining costs (ASIC) and the price they can sell it for. When cost and selling price are close or equal, the company makes no money.

But as price rises the company makes rapidly increasing amounts of profit. Smart investors look for companies making a good profit at current price levels that are relatively undervalued to their peers.  Then, if possible, they buy them on dips for maximum returns. Today’s featured article talks about a silver (and gold) mining company that’s right on breakeven at the moment and could do well – IF prices rise. We’ll wait on this one; we prefer stocks with lower ASIC, but if it dips and prices start rising it might come back to life.

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About the author

Mike Hammer

Mike Hammer has had a wide-ranging career, with trading and investing as continuing themes. Mike graduated with a business degree and spent years as a financial advisor, before moving to New York and to pursue a career in IT and education. For more than a decade Mike has been working with the Adam Mesh Trading Group as a stock market and commodities mentor. He’s trained over 200 individuals, spoken at several national conventions, and is a frequent contributor to educational webinars.

Mike writes The Gold Enthusiast daily newsletter, runs the Golden Hammer trading service, and participates in the Mesh Private Portfolio. He also keeps a position in international education which keeps him in touch with "the student mindset".

Mike focuses on the precious metals markets, the energy industry, and the financial sector. His motto is "Plan your trade, then trade your plan!"

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