The recent ASX reports from CCU are worth some research. Australia has few silver plays that are Australian based 7 these atre normally with silver being a by product of other metals. The stock has just broken out of an ascending triangle on very good volume. Silver is in fact, in far shorter supply than gold given it is used industrially c.f. most gold that has been mined still exists i.e. 98%. Silver is very poorly priced in terms of the long term gold/silver ratio, so it is capable of far lower ratios in relation to gold. Silver coming off such a lower price base also offers very high percentage returns relative to movements in the price of gold. Hedge unwinding in the precious metals area such as Barrick Mines with its gold hedges, also signs more mining companies are prepared to take their chances in the open market. Silver unlike gold does not see central banks holding large stock piles that can curtail a possible run in silver. CCU Management appear very experienced & are quietly going about their business of building a very large silver resource. Regards Buffett
CCU Price at posting:
12.5¢ Sentiment: None Disclosure: Held
