Risks with SVL?, page-61

hi mm

well newsflow generally is what glues a stock to the curve

the more discounted a stock is to the relevant metric at a given time - the more money will push into it if people become aware of it when they want upside exposure

this is as true for instos as retail investors

right now - after a horrific 4 years - gold and silver stocks are primarily valued pruely on current earnings

push 6 months into an uplift and - if people think that is going to continue - you may find more investors start wants exposure to 'ounces in the ground'

as to which silver stock will get most traction when that happens - well thats too hard at this point.

azs' pdm project is easily the most credible standalone primary silver project on the asx atm

but it really depends on what investors see as the likely horizon for silveer pricing as to which stock will move,

and at this point obviously svl is significantly cheaper than azs
i guess i woudl summarise my view as this

- if gold only goes to $us1300 - the gold stocks will per4form best
- if gold breaches 4us1300 silver will start to appreciate rapidly vs gold and silver stocks will follow
- if gold breaches $us1380 - silver will start going myuch higher and svl and azs will rerate significantly

those are my expectations at the moment. beyond that - it depends on what actual announcements each company makes

cheers

gb