Silver and Sterling Mining: What's Wrong With This Picture?

6 Month Chart of Silver ETF (SLV)

6 Month Chart of Sterling Mining Company (SRLM)

There is something wrong with this picture. See if you can find what it is.

While the price of silver is pushing to new highs, the common shares of Sterling Mining Company (SRLM) are sinking in a reverse relationship to the price of the metal it is in the business of prospecting and producing.

I find this odd for a couple of reasons. While silver prices are rocketing higher, SRLM is not showing any positive price action. This smells fishy to me as Sterling appears to be on the verge of being one of the premier silver mining companies in the world in the near future.

Sterling Mining Company has strengthened its status as one of the world's few primary silver producers by restoring the Sunshine Mine in North Idaho's "Silver Valley" to production. The Company acquired the rights to the mine and related assets in mid-2003, and officially commenced initial production in December of 2007.

Along with the Sunshine Mine and exploration properties encompassing over 25,000 acres in North Idaho's "Silver Valley" and neighboring Montana, the Company is exploring and developing properties totaling over 62,500 acres in the historic Zacatecas Silver District of Mexico.

Some recent Sterling Mining Highlights include:

Sterling Mining Company Geographically Diverse Project Portfolio

• The Company's core projects are situated in two of the world's most geologically prospective silver-mining districts, Idaho's renowned Coeur d'Alene (Silver Valley) district and Mexico's historic Zacatecas silver-mining district.

Low Geopolitical Risk

• The Company's advanced projects and newly expanded portfolio of silver properties are situated in politically stable regions with a strong mining heritage. The United States and Mexico are signatories to free-trade agreements and have laws and legislation governing investment in their mineral sectors.

Strong Technical Management

• Sterling Mining has assembled a strong technical and management team to achieve its growth plans in the United States and Mexico, including many Sunshine Mine veterans who contributed their expertise to restoring the Sunshine Mine to production.

Current Highlights

• Commenced initial production at the Sunshine Mine in late 2007.
• Assembled a team of more than 120 employees at the Sunshine Mine by year-end 2007, including many Sunshine Mine veterans.
• Secured a listing with the Toronto Stock Exchange under the trading symbol "SMQ," reflecting a strategy to raise Sterling's global profile and shareholder base. The company's shares began trading on this resource-based exchange on October 2, 2007.
• Began processing Sunshine vein ore from the Mine's Upper Country development in the newly refurbished mill in September of 2007.
• Sterling common shares began trading on the OTC Bulletin Board under the symbol "SRLM" on August 14, 2006. The company is also listed on the Frankfurt Stock Exchange (FSE:SMX).
• Completed a successful financing of US$24.7 million in August of 2007.
• Retained the independent engineering firm to complete a NI 43-10 technical report which identifies a reserve of 23.48M oz and a resource of 231M oz.
• Completed the 5,700-foot Sterling Tunnel Project, and also renovated the Silver Summit Hoist and rehabilitated the Silver Summit shaft to the 3,000-foot Level to complete the Sunshine Mine's secondary escapeway system.
• Expanded landholdings in the United States and Mexico, while continuing to explore priority projects independently or through industry joint ventures.

In the meantime, this may be a great opportunity for those who wish to load up on some shares of SRLM at bargain prices.

Disclaimer: I own shares of Sterling Mining Company (SRLM) and stand to make profits on a rise in the common shares of this company. Do your own due dilligence before you make any investing decision including this one.

Silver Weekly Chart Shows Bullish Possibilities

Silver appears to have broken out of an ascending triangle. This could signal the beginning of another strong run up in prices similar to the September 2005 to March 2006 time frame.

GOLD & SILVER Weekly Charts

Will Higher Rates Sink Gold and Silver?

Check out this Bloomberg article below. The headline speaks for itself. If you have ever read the work of Jim Sinclair, then you already know better :)

Gold, Silver Fall as Higher Interest Rates May Pare Demand
By Choy Leng Yeong

June 12 (Bloomberg) -- Gold fell, resuming its decline to a 12-week low in New York, on concern higher global interest rates will reduce demand for the precious metal as an alternative investment. Silver also dropped.

Gold tumbled 3.9 percent last week, the biggest weekly decline in three months, after the European Central Bank and the Reserve Bank of New Zealand raised rates. Holding gold becomes less attractive when rates rise because the metal has no fixed returns. U.S. Treasury yields rose today after China said prices increased at the fastest pace in two years, renewing speculation rising global inflation will prompt central banks to raise rates. (Read the rest of this article HERE)

Silver Getting Ready to Move Higher

Silver is getting ready to move higher very soon. At least that is what I believe. Silver and Gold have been consolidating their large gains for a long time now and appear to be on the threshold of major moves upward.

It is interesting to note that according to the Resourse Investor, the Silver ETF has already taken 15% of the world silver supply off of the market. This is pretty huge. I don't know if their numbers are correct or not, but the point is that Silver is scarce and getting more scarce.

A second Silver ETF was started in Germany recently. This will take more silver off of the market as well. The last time silver started a major run up from a breakout of a triangle pattern, it moved up 100% over approximately 6 months.

This time may be no different. Physical silver and gold are the safest way to own the metals. Buying an ETF theoretically gives you the same result, but some question wether or not the silver actually exists in the ETF or if they are playing a paper shell game.

Either way, for the next several years I would think either would be a safe bet to own. If you don't have any exposure to Silver or Gold, now is an excellent time to add a position to help combat the loss of purchasing power of the U.S. Dollar as it's value is continually inflated away with large sums of electronically created "Money".

Hang on..... this could be fun!

If Your Not Outraged, Your Not Paying Attention!

Are you paying attention to the amount of value our dollar has lost since 1913? Are you paying attention to the massive deficits that our government is running? How about the fact that our money (also known as Federal Reserve Notes) is nothing more than a promise to pay more worthless Federal Reserve Notes?

Have you noticed that in our current monetary system that all money is borrowed into existence? Do you realize that if all debts were paid back today there would be no money at all? Does this seem like a stable monetary system to you?

Are you aware that the Federal Reserve is neither federal nor does it have any reserves? Do you understand that the power to coin money has been handed over from our own government to a private banking cartel known as the Federal Reserve?

Have you realized the fact that there is no law that requires you or any other American to pay income taxes? Are you paying attention to the fact that if you don't pay income taxes you will most likely be terrorized by the IRS?

Do you realize that all of the income tax that Americans pay goes straight into the coffers of the Federal Reserve to pay for the interest on the money that our government borrows from this private banking cartel? Did you know that our government could change this if it wanted to?

Are you watching as special interest bills get hidden inside of other larger bills even though they have nothing to do with the bills they are attached to? Do you think that the Patriot Act has anything to do with being patriotic or giving you more freedoms?

Did you know that on 9/11, it wasn't just the Twin Towers that came down, but there was a third building? Are you aware that no plane ever struck it? Do you know why?

Are you feeling more secure now that we have the Department of Homeland Security and the TSA? Are you starting to get the feeling that the war on terror is really just the war against our freedoms?

Are you standing by and doing nothing as the corrupt organization known as the FDA makes a final power grab to regulate all mineral supplements, vitamins and any other substance that may have a positive effect on your health?

Are you getting excited about the new National ID card that you and I will be required to carry starting in May of 2008? Do you look forward to carrying around your shiny new ID with an RFID chip inside of it that will house your personal data but be scannable by anyone that is close enough.

Are you ready to become a part of the North American Union? Do you even know what this is and who is pushing for it?

Do you think it is a good thing that our government has a working group on capital markets also known as the plunge protection team? Do you know how much money it takes each day to finance our current account deficit?

Are you happy that we are a war mongering nation spending ourselves into oblivion while we can't even protect our own borders?

Are you paying attention to what the price of gold and silver are telling you? Are you outraged? Or are you even paying attention?

A Silver Update - What Now?

Here are two new charts of Silver. After pronouncing that Silver had "broken out" a couple of weeks ago, Silver quickly changed course and dropped significantly. Has this negated the breakout? While at first glance it may appear so, looking a little closer it seems that Silver may just be shaking out the final longs before it heads up to higher levels.

While it did break slightly below its long term up trend, it has closed back above it now and this is not unusual behavior for the tiny and easily manipulated Silver market.

Taking a look at the Point and Figure chart we see there has been no damage done and the projected price of $21.00 plus still remains.

Silver clearly needs to take out the $15.00 per ounce mark and do it convincingly to prove that it is ready to move higher.

Where does gold go from here?

Silver and gold were beaten down badly last week. Silver lost more than gold percentage wise as is usual. Looking at the weekly gold chart I do not see any real damage on the chart to speak of. The long term uptrend in gold is still in tact. Take a look.

SILVER Breaks Out!

Silver has broken out to the upside as predicted in the last weekly silver chart. This is a strong looking chart and I expect silver will head much higher from here before taking another rest. This wedge was a long consolidation pattern that has been resolved to the upside.

Silver fundamentals are very strong and with all of the new uses of silver plus the recent investment demand from the Silver ETF (SLV), I expect higher prices for silver over the long run.

Weekly $SILVER Chart

Silver looks posed for a big move in the very near future. I believe it is heading higher from here and as such, I am long silver as well as selected silver stocks.

Is Silver Getting Ready To Drop In Price?

With all of the bearish precious metals analysts out there recently, I decided to take a look at the chart of Silver. Silver broke out of a symmetrical triangle in November of 2006. Since then it has fallen back down toward its rising trend line where it looks to be testing support slightly above $12.00. Now take a look at the lower chart indicator. I have circled where it has been in a historical buy zone. It is there again right now. So, while all I can find are prognostications of a collapse in commodities and precious metals, it would appear that we are at an ideal buy zone for silver.

Time To Tame The U.S. Mint

This is absolutely sickening. It is definitaley time to question why the U.S. Mint exists, and what is it's law making authority? Since when does the U.S. Mint declare law upon the citizens of the United States of America?

Are you now a criminal for melting down or shipping pennies and nickels out of the U.S.? Who's money is it anyway?


By David Bond, Editor

The Silver Valley Mining Journal


Time To Tame The U.S. Mint

Wallace, Idaho – It's really quite past time to tame the United States Mint. First the SOBs went for Bernard Von Nothaus's jugular by unilaterally declaring the silver Liberty dollars illegal for tender. And now, they propose to tell us exactly what we can and cannot do with our pennies and nickels.
Here is what the Mint said in its 14th December press release:
“Washington, D.C. -- The United States Mint has implemented regulations to limit the exportation, melting, or treatment of one-cent (penny) and 5-cent (nickel) United States coins, to safeguard against a potential shortage of these coins in circulation. The United States Mint is soliciting public comment on the interim rule, which is being published in the Federal Register.
“Prevailing prices of copper, nickel and zinc have caused the production costs of pennies and nickels to significantly exceed their respective face values. The United States Mint also has received a steady flow of inquiries from the public over the past several months concerning the metal value of these coins and whether it is legal to melt them.(Read the rest of the story here)

A look at this year in charts

This year has come to an end. What does next year have in store? Let's take a look.

Silver and gold ended the year on a down note.

The Dollar and Bonds ended the year on an upward note.

Inflation is heating up.

The United States continues to print too much money and spend it on useless wars.

The Republicans and Democrats continue to keep a lock on power and corruption as the U.S. citizens are too stupid to figure out that they have been duped for years now. There are no Republicans or Democrats (except for Ron Paul who is a Real Republican). There are only Demopublicans. As long as the two party system remains in place expect more spending, war, entitlements, corruption and a decline in the standard of living of Americans.

A big thank you to Downsize DC and Ron Paul. These are two worthy organizations that are actually trying to do something about our absurd political and economical condition. Please visit them and support them and you can make a difference too.

A happy New Year to all.

Chart Review Below:

Silver Gets Hammered

Silver took an awful beating over the last several days as can be seen in the chart depicted here. This is not normal market behavior, but rather a good way of confusing the majority of people to hide the fact that our money masters (the Federal Reserve) are printing up gigantic amounts of money causing the value of the US dollar to drop precipitously. The money men are quite powerful as they have the lawful ability to create money out of thin air and then sell large quantities of items they don't own. For example, they can sell large amounts of paper silver over a very short period of time thus creating a stampede out of the lustrous metal. This is the type of action you are seeing in this silver chart.

A look at SLV and SILVER Then and Now

When we last looked at these two charts one or the other had to be wrong. Which way did you guess?

Two Different Views


When you compare these point and figure charts of SLV(the silver ETF) and Silver you can see that they clearly don't agree.

So, is silver ready to break out or break down? You be the judge.

What time is it?

Well, since today is November 15th, 2006, that means it might be time to load up on gold, silver and precious metals shares.

After consolidating for quite a while and then breaking out of a downward wedge, it seems that gold and silver may be setting up for a run quite a bit higher.

It also might be time to look at the pitiful condition of the U.S. Dollar fundamentals and make sure you are prepared for what is heading our way over the next several years.