$36.90 0.13 (+0.35%)
11/6/2009 4:00 PM

Companhia de Minas Buenaventura SA (ADR) (BVN)

CAPS Rating: 3 out of 5

A precious metals company, which is engaged in the exploration, mining and processing of gold, silver and, to a lesser extent, other metals.

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Member Avatar dcstrade (94.52) Submitted: 3/6/2009 2:08:08 PM : Outperform Start Price: $18.93 BVN Score: +34.23

South American gold and silver mining company... handles the current deflation pretty well for a huge inflationary hedge. This balances out some of the near-term market sell-offs (which may not be over yet) in more industrial type commodities, foreign companies, and US companies with high exports.

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Member Avatar dcstrade (94.52) Submitted: 3/6/2009 2:14:28 PM
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I also recommend SVM, which does not have a CAPS symbol. It is a Canadian silver mining company, Silvercorp Metals, which is a rare breed. The gold:silver ratio is ~70:1, where the historical mean is in the low 30's. The US monetary ratio of gold:silver was set to 16:1 when it was used to back US currency. Some estimates of total supply of gold and silver in the earth's crust suggest a 17.5:1 ratio. Silver has both industrial and investment demand, while gold is heavier on investment demand.

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