Centavos Portfolio Update: Blood in the Streets

December 2011

"Buy when blood is in the streets, even if the blood is your own" - Baron Rothschild, 1871 Sure is plenty of red in the return column of this blog's model portfolio.  Junior exploration stocks in general haven't fared well in the last six months, and my stocks haven't been the exception. The last update was in September, and things haven't improved since then.  Down 40 percent, even after allowing for realized gains from two trades. A bit of an ugly picture, huh? Good. That means opportunity. Operation Recovery Malaga is first up in Operation Recovery.  The original purchase was for 1000 shares at $0.24/share. The purchase of 5,000 more shares at $.108 brought the unit cost down to $0.132. Whither Malaga and … [Read more...]

How To Buy Junk Silver Coins On eBay

Screen Shot 2011-12-01 at 9.01.46 PM

Following up on last week's post on junk silver, here's a quick tutorial on how I buy junk silver coins on eBay. As always, I must caution the reader that this is what I choose do with my own money.  It's not financial advice (obviously) and I'm just a guy on the internet, not a Certified Financial Advisor (even more obviously). What I Shy Away From Proof coins or collector sets. The mint condition of the coins can add a significant premium, up to twice the silver value. Pre-1940 coins.  Walking Liberty, Peace Dollars and Mercury Dimes are nice, but the problem with older coins is that they've seen a lot of circulation. Lots of touchy fingers have rubbed on them, wearing down the face profiles and therefore losing some of the … [Read more...]

Junk Silver In A Household Economy

B yen military scrip bill used in US-Occupied Okinawa

My wife and I have been frequently accused of exploiting our children for cheap manual labor. True to some extent, even though the accusations are being leveled by said children. :-) We do pay them.  For a few shekels here and there, they get to learn the responsibilities of keeping the house clean, doing laundry, and helping Mrs. 101 with deep spring cleaning chores. Occasionally, we also give the opportunity for some extra money chores like special projects in the garden,  assembling furniture, or vacuuming out the cars.  The boys occasionally grumble, but they're good helpers. The downside to this is that with a ready source of cash inside the house, there's a strong disincentive to seek employment outside the house.  A … [Read more...]

GET RICH WITH PENNY MINING STOCKS!! (not really, it’s just this week’s roundup of worthwhile links)

"Half Dome Apple Orchard - Yosemite", by Ansel Adams --- what's this picture got to do with silver mining stocks?  Nothing... I just like it.

There are voices starting to rumble that another major market dip is coming soon. On Market Watch this morning, there was a column presaging doom and gloom: A Black Friday On Wall Street Looms This Year …. The European markets are open Thursday as the crisis continues to deepen. News that it’s now affecting German debt sales rattled investors worldwide Wednesday and rocked U.S. stocks for their sixth loss in as many trading days. The declines wiped out a near-term support level of 1,192 on the S&P 500 index, as it closed just under 1,162. So while a holiday miracle is always possible — perhaps the IMF steps in to bail out Europe — if it doesn’t happen, then we’ll be chasing headlines and European stocks early Friday … [Read more...]

Centavos Model Portfolio: The market, it burnsssss ussss..

USA Financial Service Model Portfolio of Penny Mining Stocks - September 2011

Time for another update to the Centavos Model Portfolio of penny mining stocks.  The picture has not gotten any better from the last update (Model Portfolio Haz Sad Face) back in May.  It may strike readers as a little strange to post an update on very volatile equities strange after a hard down day like yesterday, especially as you can see from the portfolio snapshot, the return column is swimming in a sea of red.  But it’s only a paper loss, natch. (click on the spreadsheet for a larger view) A couple of notable changes since the last update: Added some more shares Coral Gold, doubling the position to 4,000 shares. Hathor Exploration is being courted for an acquisition by Cameco, one of the larger uranium mining companies out … [Read more...]

Thoughts on Silver – Part 2

A nice chunk of silver - photo courtesy of Wikimedia Commons

This is part 2 of a multi-part series on silver.  The first article I posted on this blog back in early May “Some Thoughts on Silver – part 1” Silver Mining An important thing to consider is that there really aren’t many pure silver mines (I listed a few in my last article on silver).  Silver is mined mostly as a by-product of other metal extraction. Silver seems to have a particular affinity for base metals like zinc, nickel and lead, and copper to a lesser degree.  Gold is also a frequent partner to silver. Mining giants like Goldcorp, Barrick and Newmont frequently have a silver stream in their gold mines.  Other base metal miners like Xstrata and VALE Inco will mine poly-metallic deposits which will also contain varying … [Read more...]

Is the Bull Market In Silver Finished?

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I was about to write a follow up to last week’s article on silver, when along comes Fred Carach with great guest post on silver.  I’ve added some commentary and a photo of a table from the Silver Institute.  Fred is the author of “Forty Years a Speculator“, a book on mining stocks and natural resources. As I write these words silver has collided off of a brick wall that has capped it upside performance since its old 1980 high of $50 an ounce. It is now in what appears to be a death spiral to the day-traders, momentum players and technicians that dominate today's markets as never before in history. As they consult their all powerful charts these trend chasers see a classic double top at $50 an ounce that has held for … [Read more...]

Some Thoughts on Silver – Part One


Silver and its extreme ups and downs sure has been getting a lot of press lately, both in the mainstream financial media and in the PF blog-o-sphere.  Even the last personal finance carnival had a silver theme.    Squirreler’s post on silver a few days back (“Is There A Silver Bubble? How High Can Prices Go?”) prompted some reflection, and a metaphorical kick in the rear to finish this long post on silver that I’ve been kicking around for a while. Silver is something I have quite an interest in.  We hold some actual bars and coins, shares in silver miners and junior explorers, and shares in a silver exchange traded fund (not SLV).  We also foster a bit of a silver-based household economy with our kids, mostly centered on … [Read more...]

Investing in Silver – 2009 Flashback

Here's what Bloomberg TV was reporting on silver in March of 2009 Latest silver spot price:  $24.32 / oz. While the mainstream press is afire with gold buzz, silver is quietly plodding along.   I've been buying silver, off and on, for the past 20 years or so.   In the last couple years I've become a fan of buying small quantities of silver on Ebay, from a few favorite sellers.   Ten- and one-ounce bars, silver rounds, pre-1964 "junk" silver.   Not necessarily to resell at some future point (although we might, depending on circumstances) but to just to hold as a part of diversified  portfolio. Physically  held silver we could consider to be an investment.  Silver mining stocks, on the other hand, could either be investments … [Read more...]