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Silver Stock Extra:
by Jason Hommel

I am building a list of "sophisticated" and/or "accredited" investors who qualify and desire to participate in private placements.  A private placement is when a company issues stock and warrants (which are like options) to raise money for things like drilling or acquiring more properties.  To qualify, the investor usually has to have at least $250,000 annual income, or a net worth of $1,000,000, (not including home residence).  If I find any private placement opportunities, I might be able to introduce you to the company, and I might get a referral or finder's fee.  Email me at jasonhommel@yahoo.com and tell me if you are a "sophisticated" investor if this kind of opportunity interests you.  This is not a solicitation for any particular stock or company, and I'm not brokering any securities or selling any stock.

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Brokerages for investors in the USA that handle Canadian issues and/or pink sheets:

www.ameritrade.com Internet, $10.99; Telephone System, $14.99; Broker-assisted: $24.99 Market orders, $29.99 Limit orders.

www.penntrade.com online trading, $29.95/trade. no extra charges for market orders, limit orders, large volume, small volume, stocks under $1.00, or Canadian, Pink Sheets, or OTCBB. (Get started with only $500!)
www.pennaluna.com --for broker assisted trades, starting at $45/trade.

www.gril.net Global Resource Investments LTD.. "They appear to be very knowledgeable in the field and all their brokers are out of the mining industry."

www.aftrader.com --only $10 in and $10 out. No extra fees. You buy the Canadians PK or OB.

www.etrade.com

www.scottrade.com "will buy Canadian stocks cheap."

TD Waterhouse "They will gladly open a Canadian account for their American clients, allowing trades directly in Canadian currency and on the Canadian markets"

 I have been buying Canadian stocks through my online Fidelity trading account with no problem

Interactive Brokers
http://www.interactivebrokers.ca/ --"Low trading cost just 2 cents a share up to 500 and 1 cent after that with a $2.00 minimum
This is the lowest cost online broker I am aware of.
I believe they accept accounts from anywhere in the world you can also trade European, Australian, African exchanges etc. as well as options puts, calls, futures etc.
You trade with a online trade platform with streaming quotes orders are filled very quickly! unlike the slow interface of most online brokers.
There is one drawback you can trade TSE, AMEX NSE stocks but unfortunately not the venture exchange where many mining stocks trade."

(If you know of any other good brokers for CAN issues, & PK stocks, email me. Jasonhommel@yahoo.com  Some investors are telling me their brokers cannot buy Canadian stocks or the pink sheets.)

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TO TRACK THE STOCKS ON THIS LIST:  Click on yahoo finance.  Take a minute to register.  Sign in.  At the top of the page, click "create" a portfolio.  Choose "track your current holdings".  In the large box, copy and paste the following symbols (Use your mouse to highlight the text, then use control-C to copy, control-V to paste).

XAGUSD=X BHP GMBXF.PK BVN HL CDE IPOAF.PK GRS GAM.TO ECU.V MAI.V MNEAF.OB SIL MFN MFL.TO CFTN.PK TM.V TUMIF.OB KBR.V PAAS CZN.TO CZICF.PK FSR.TO WTZ WTC.TO ORM.V SSRI MGR.V MGRSF.PK DNI.V ADB.V SRLM.PK CHD.V CHDSF.PK FAN.TO FRLLF.PK HDA.V SVL.V STVZF.PK EXR.V EXPTF.PK ASM.V ASGMF.PK MNMM.OB UNCN.OB III.TO IPMLF.PK FCO.TO FCACF.PK CDU.V CUEAF.PK AOT.V ASOLF.PK MCAJF.PK IMR.V IMXPF.OB TVI.TO TVIPF.PK EZM.V EZMCF.PK CAUCF.PK MAG.V NPG.V NVPGF.PK MMM.TO OTMN.PK MMGG.OB IAU.V ITDXF.PK SML.V SMLZF.PK EXN.V NBG.V NBULF.PK SDR.V MAN.TO MMALF.PK BCM.V BCEKF.PK EPZ.V ESPZF.PK QTA.V QURAF.PK NJMC.OB HGM.V HOGOF.PK GNG.V GGTHF.PK CHMN.PK KRE.V KREKF.PK MMG.V MMEEF.PK BGS.V SPM.V SHSH.PK CEV.V CVEEF.PK LEG.V SRY.V FR.V BBR.V TUO.V TEUTF.PK ROK.V CBP.V CPBMF.PK LEG.AX NL MAR.AX MTB.V MSLM.PK SBUM.PK FWGO.OB MERG.PK SMLM.PK SIBM.OB SIVE.PK MEMLA.PK SLSR.PK SDSI.PK HRNS.PK GPXM.OB GSPG.OB AAG.V ANMCF.PK YLS.V LASCF.PK RRM.V LMA.V

The first symbol, "XAGUSD=X" lets you track the silver price.  These symbols are in the rough order they appear in this weekly report, so this way, you can follow along what's taking place in the silver market on a daily basis.  Also, you can easily access charts for any of these, such as 1 day, 5 day, 3 month, 6 month, 1 year, 2 year, or 5 year charts.  You will love being able to access this information so quickly from your own continually updating "silver stock page".  You will also be able to see, in one place, right at the end of the list, the news releases for each stock on the list (if the company has their PR act together).  

Here is how to track the price of your Pink Sheets stocks.  The PK symbols do not update volume or price too often, if at all.  This is often due to the laziness of the pink sheet dealers.  To get the price and volume of your stock, look up the Canadian symbol.  Then, multiply the Canadian price by the exchange rate, which today is about .76.  That will give your US dollar price.  Then, add about 1-3% for commissions for trading through the pink sheet dealers to get an idea of what you might pay.  But due to the lack of liquidity in these, sometimes a single moderately-sized order can move the price up 15% if you buy in a hurry, so be prepared for that.  If you put in a low price, sometimes your limit order will be filled if you are patient, and the price moves back down to your order, and that might take a few days, or perhaps never if the stock takes off well above your price.

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All about Canadian law, 43-101.
http://www.bcsc.bc.ca/Publications/mineral_projects_sept03.pdf
-- a 24 page (large type) document, "Standards of Disclosure for Mineral Projects"
Defines terms, the five categories such as "measured, indicated, inferred resources" and "proven & probable reserves".  The reserves category represents those minerals determined to be economically feasible as indicated in a  "bankable final feasibility study" right before a production.  The reserves should be estimated to within +-10- 15%.  Resources should be measured to within +- 20-25%..

If a study was done before 43-101 rules were made, then a Company needs to say the estimate is "historical" & use cautionary language that it's not 43-101 compliant.

The US does not have such guidelines about reserves.  The US only allows "proven & probable reserves".

"Additional mineralized material," or "exploration potential" should be expressed as a range, and the company should be able to give the basis for the estimate, such as the dimension, such as approximate area, depth, and grade.  Further, a cautionary statement should be issued, such as, "These may not result in resources, depending on exploration success."

Since I am not a company, and since I'm in the US, and I have "free speech" rights, these guidelines do not apply to me, but I will use them to the best of my ability in this report.  When numbers are not 43101 complaint, they are expressed herein as "exploration potential".

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To learn more about the silver market:

Book recommendations:

"Silver Bulls" by Paul Sarnoff. Details the 1980 rise and fall of silver. Written in 1980.

"Silver Bonanza" by James Blanchard. 1993. Outlines the case for silver.

"The definitive guide to North American mining stocks" by Doug Casey & Jerry Pogue available
thru alibris.com & amazon.com. Jerry Pogue is a director of Mines Management. Doug Casey has
been #1 booster of mining shares since 1978 publication of "Crisis Investing " and 1982
"Strategic Investing" and 1992 "Crisis Investing for 90's"

The three best sources for commentaries on the silver market that I've found on the internet
today are David Morgan, Ted Butler, and a report by "Kazvestor".  I subscribe to, and read,
David Morgan's newsletter, and I recommend it.

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Precious metals prices are most often quoted in terms of "troy ounces" (in London and at the COMEX). 

But mining companies often discuss grams/metric tonne, also known as a part per million, (PPM), because scientists and geologists (who produce the samples) use the metric system. And international gold figures for annual supply and demand are often quoted in terms of metric tonnes, because most of the world is on the metric system.  Confusingly, silver figures for annual supply and demand are often quoted in terms of millions of ounces, and not in terms of metric tonnes like gold.  I don't know why.

So, the most common conversion needed to understand the gold and silver markets is to convert grams and metic tonnes to troy ounces.

Conversion table:
1 troy ounce = 31.104 g
1 gram = .03215 troy oz.
1000 g = 1 kilo
1000 kilo = 1 metric ton
1 metric ton = 1,000,000 grams

1 metric ton = (troy oz./ 31.104g) x 1,000,000 grams
1 metric ton = 32,150 troy oz.

A metric ton is commonly spelled "tonne".

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For information from the SEC on how to protect yourself from a "pump & dump" scam, see the

following:

Pump and Dump Schemes
http://www.sec.gov/answers/pumpdump.htm
Pump&Dump.con: Tips for Avoiding Stock Scams on the Internet
http://www.sec.gov/investor/online/pump.htm
Microcap Stock: A Guide for Investors
http://www.sec.gov/investor/pubs/microcapstock.htm
Internet Fraud: How to Avoid Internet Investment Scams
http://www.sec.gov/investor/pubs/cyberfraud.htm
Tips for Checking Out Newsletters
http://www.sec.gov/investor/pubs/cyberfraud/newsletter.htm