In reference to the comments following yesterday's announcement by the ASX regarding SVL and a trading suspension, some of you may have missed my earlier post on the other thread which should give you the answers to your questions, about "final approval procedures" in the letter to the ASX.
Also, there will be no refusal of approval because the Company has stated publicly any objections will be dealt with to ensure full and final approval is granted.
As the final stage of the approval processs is here as predicted it's now up to the IPC. See my earlier post linked here for your convenience:https://hotcopper.com.au/threads/recent-svl-price-action.6854885/page-60?post_id=64734528
Now, a few words about capital appreciation and the search for yields.
https://surplusenergyeconomics.wordpress.com/2022/12/12/244-in-search-of-illusory-value/#comments
In these Orwellian times, yields, ( or the rates of interest ) earned on capital have been crushed, making *capital appreciation the primary form of return on investment.*
An individual can quietly sell stocks, bonds or property in order to realise asset price appreciation, but investors *collectively* can't. Why not? Simply because sellers en masse push the price down. When offers go no bid, there's no end to the downward spiral.
Purely paper gains create the "wealth effect." You feel richer with few million shares or a five million dollar house. But when it comes to a crash only the early bird gets out with his feathers intact.
Remember, when the herds exit, the doors become smaller.
What has all this got to do with owning SVL ( or any other miner, for that matter )?
As we all expect to realise a profit from sale of SVL, even though it's tricky to time the exit when the price is rising, as greed takes over; and waiting for a top ( you'll only know when the top becomes a drop ) could mean catching a falling knife, then it follows that the gains must:
1. Be able to buy something of value to you ( if the currency, in this case AUD, still retains some purchasing power in a inflationary environment, which is when silver is priced in a minimum of *triple* digits.) And as I've said before, if all else fails, there's your share in a company that has real money in the ground. Not perfect insurance but the ratio of risk to reward is huge in my view. Does anyone remember POSEIDEN nickel? Poseidon shares peaked at an intraday high of $280 in February 1970, and fell rapidly thereafter. https://en.m.wikipedia.org/wiki/Poseidon_bubble#:~:text=In%20September%201969%2C%20the%20mineral,not%20illegal%20at%20the%20time). Millionaires were made overnight who got out earlier than most.
But now we have *infinite demand potential for real money, silver, in a world of worry,* and young hedge fund managers looking anywhere for returns, not yet understanding their funds denominated in a currency are losing value by the day, and overlooking the safety of gold and silver to maintain purchasing power as currencies die.
2. Provided there are still enough buyers bidding the price up. A falling price is indicative of falling demand, but as paper silver is soon to be dead and buried as the USD is replaced by settlement in gold/gold substitutes ( ie SCO; SGE; BRICS+; Russian and Chinese bullion reserves etc.) demand for gold and silver in a hyperinflationary currency crisis in all Western countries ( G7: US,UK, AUS,CAN,JPN,NZ,NK,) will be stronger than the miners, collectively, could supply, with the only supply to fulfill demand coming from those willing to part with metals for tangibles; farms, houses, cars, food, as paper fiat currencies go to zero.
Converting any paper gains into bullion ( while the currency is still accepted ie has any value left ) for physical silver, even priced at 100+ USD/toz is a way of leveraging the gains, as the SP moves in tandem with the metal price, as one hypothetical example, 100 AUD/toz = 5 AUD/share × 10,000 shares = 50,000 ÷ 100 = 500 toz.
Having silver has the very real possibility of swapping for gold as the ratio closes thereby doubling your gains, or swapping metal for tangibles as mentioned.
How many ounces for a house when the seller must chose between getting some of your metal or starving? Won't happen?
I don't trust the system to last another year, given the past few Dystopian/Matrix/Orwellian years, and converting all gains from shares, is not a certainty, but a very real probability, is my personal view, and my plan.
Whatever choices you make is entirely up to you, and now that *final* approval is imminent in Q3 2023, the rapidly deteriorating system in terms of currencies, and the financial war of East vs. West gathers momentum ensures metals are again taking their rightful place, as they have through millennia, as the only true, universally accepted money. This is the perfect storm for the SVL SP.
A once in a lifetime gift.
Bonne chance, mes amis spéculateurs!
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