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Precious Metal Mining Stocks – GSPG & SRSR

Posted on June 28, 2009 by Penny Stocks Picker

I don’t usually invest in penny stocks except for a few precious metal mining stocks.  I have traded GSPG over the last six years, SRSR over the last 1.5 years and hold a core position in both as a long-term potential investment.  I’m a believer in diversifying your portfolio so holding both gold and silver is a hedge against inflation.  Considering gold and silver is hard to store safely, owning a piece of a mining company with potential is another way to invest in both of these precious metals.  I personally feel at this point in time silver is going to outperform gold considering:  1) current silver to gold ratio which is currently 67 to 1 (that is 1 ounce of gold is 67 times the price of 1 ounce of silver), historically the ratio is 17 to 1.  2)  Bulk silver coins are trading at historical premiums over the spot price of silver for well over a year….that signals demand.  If you want to invest in silver or gold but don’t want to own it physically or invest in one company then you could try an Exchange Traded Fund (ETF) such as SLV or GLD to limit your risk. 

GoldSpring, Inc. (OTCBB: GSPG) currently trading at $0.011.  A precious metals North American mining company with extensive contiguous property in the Comstock Lode District in the state of Nevada (in addition to other properties). 

There is both potential to trade or invest in GSPG stock.  There is solid support at .01 so your downside risk is low.  If it breaks below .01 then you might considering closing your position.  Long-term….I see potential but with risk.

First time in history has one company consolidated the majority of the Comstock Lode property.  GoldSpring has secured the required permits (a huge accomplishment) for mining operations.  The company’s objective is to increase the reserves through continued acquisitions and exploratory drilling.

The Comstock Lode has a long history and has been extensively mined in the past (please research it…see links below).  However, it is my opinion that the consolidation of the majority of the districts mining claims and current technology to explore and mine give GoldSpring huge potential to be successful and locate the next Bonanza.  All it’s going to take is a news release with the word “EUREKA”.  Yes, lots of negative issues but what penny stock doesn’t.

There is plenty of information on the web, the companies website, so you should do your own due diligence.  The following sites are a good place to start: www.goldspring.info and the iHub GSPG bulletin board at investors hub.

Sarissa Resources, Inc. (Pink Sheets: SRSR) currently trading at $0.076 is a junior mineral exploration company.  Volume and price breakout last Friday.  I was first in at .0016 so my risk is non-existent at this point.  Checkout the iHub board and research the links.