Malcolm Bucholtz B.Sc, MBA Analyst

Trading Note

The financial world is in a spot of bother right now, but instead of getting sucked into the vortex of fear, investors should take a step back and look for the opportunities that this crisis is presenting. Make no doubt about it, the Federal Reserve with the help of its trusty printing presses will print the financial system out of trouble. The end result, though, will be a bloated money supply (as if it's not bloated already…) which will fan the flames of inflation and further dampen the enthusiasm for fiat currency. The benefactors of this exercise to print the system out of its deep dark hole, will be none other than Gold and Silver. But, buyer beware. The world is not all milk and honey. Think twice if you are looking at buying shares of a Gold or Silver firm that is involved in some far flung corner of the world. Geopolitical tension in some of these countries can rise quicker than the temperature on a summer's day in Phoenix. Probably wiser to stick close to home where political risk is not a factor. The question then becomes one of "where do I invest in Gold and Silver in North America"? Well, for starters, take a look at the picturesque State of Idaho.

In particular, Idaho's Silver Valley in the Coeur d'Alene mining district is world renowned for its history of Silver mining. In fact, since 1884, the district has produced over 1.18 billion ounces of silver, along with major amounts of lead, zinc, copper, and antimony. In total, more than $2.89 billion worth of metal has been produced from veins in the district.

One company that has caught our attention here at The Market Traders is Canadian listed US Silver Corp (TSXv:USA). US Silver is a relatively new story for the markets. In 2006, US Silver acquired over 10,000 acres of land from Coeur d'Alene Mining (for a mere $15 million) which hosts the past producing Galena Shaft(s) and Mill Complex, the past producing Coeur Shaft and Mill Complex and the Caladay exploration shaft. US Silver has since gone on to acquire additional property in the area to being its land holdings to some 18,000 acres.

Malcolm Bucholtz B.Sc, MBA Analyst

Trading Note

The financial world is in a spot of bother right now, but instead of getting sucked into the vortex of fear, investors should take a step back and look for the opportunities that this crisis is presenting. Make no doubt about it, the Federal Reserve with the help of its trusty printing presses will print the financial system out of trouble. The end result, though, will be a bloated money supply (as if it's not bloated already…) which will fan the flames of inflation and further dampen the enthusiasm for fiat currency. The benefactors of this exercise to print the system out of its hole, will be none other than Gold and Silver. But, buyer beware. The world is not all milk and honey. Think twice if you are looking at buying shares of a Gold or Silver firm that is involved in some far flung corner of the world. Geopolitical tension in some of these countries can rise quicker than the temperature on a summer's day in Phoenix. Probably wiser to stick close to home where political risk is not a factor. The question then becomes one of "where do I invest in Gold and Silver in North America"? Well, for starters, take a look at the picturesque State of Idaho.

In particular, Idaho's Silver Valley in the Coeur d'Alene mining district is world renowned for its history of Silver mining. In fact, 1884, the district has produced over 1.18 billion ounces of silver, along with major amounts of lead, zinc, copper, and antimony. In total, more than $2.89 billion worth of metal has been produced from veins in the district.

One company that has caught our attention here at The Market Traders is Canadian listed SNS Silver Corp (TSXv:SNS). SNS is working hard to bring the past producing Crescent Mine into production again. The history of mining at the Crescent Mine goes back to the early 1900's. Records show that between 1924 and 1977 the mine produced 868,926 tons of ore grading 25.97 ounces Silver per ton with smaller associated percentages of Lead, Zinc and Copper. This high grade made Crescent the highest grade producer in the area. But alas, the Crescent Mine produced for the last time in 1983 when low Silver prices forced its closure. At the time of closure, its operators estimated that there still was something like 9.3 million ounces of Silver left in the mine just waiting to be recovered.