Silverado Gold Mines: Accumulate under 10 cents
Wednesday, June 20, 2007 at 01:08PM
Gold Prices in Gold Mining Companies
The summer doldrums has presented us with a bargain buy in that Silverado Gold Mines Limited is now trading under $0.10.

We put in an order today to Buy at 9 cents which is a little on the cheeky side but we thought that we would try and take advantage of the current sell off in this gold miner come green fuel adventurer. We believe that the fundamentals for gold in the second half of this year still look good and that the Nolan Heights gold mine is getting closer to the dream of hitting the Mother Lode. Even without hitting the ‘Big One’ this company is still generating cash from mining placer gold which is of exceptional quality. With that in mind we will try to find some more cash in order to accumulate more of Silverado’s stock.

The side order isn’t doing bad either! The green fuel project which was another dream not so long ago has finally commenced and if it lives up to expectations when it comes on stream this stock price will really move. Just sit back and imagine it, oil pushing $80 per barrel and Silverado pops up with a form of synthetic oil for around $15 per barrel. The calculator is over heating!

As we can see from the chart this stock has certainly been volatile lately but may just be beginning to form a base from which it can build.

Silverado Chart 20jun07

Don’t go too mad on it though, after all it could still go lower before heading north.
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