Jason Tillberg

Is Silver Standard Resources Undervalued?

This was a very good article, thank you for sharing your opinion of the CEO. SSRI is a key holding for myself and my clients. I've had to deal with ups and downs in the past. But this years rise in silver price that did not seem to do justice for SSRI was frustrating to say the least. Writing covered calls has certainly helped cushin the fall. But as the share price has fallen, I got greedy instead of fearful and added where I could.

Just today, I did some research on SLV, the silver ETF that has silver bullion backing it's share value. When it started out in 2006, it had 20 million ounces of silver. At the end of 2007, it has 150 million ounces of silver. Now it has 190 million ounces of silver. This is only $3.2 billion worth. GLD, the gold ETF has a market cap of $18 billion or so. The world inventory of silver that is above ground and available for investment I believe is less than 1 billion. It could be as low as 600 million. At which case, SLV would have to become a closed end fund as they would not be able to acquire silver to add to it's shares.

Companies like SSRI I believe stand to benefit tremendously when the coming silver shortage takes hold in my opinion.