Yes, Matthew, I expect silver to go to 100 or even 500, so SSRI is going much higher than 13 one day. Me no sell!

I agree that Claude was a better company stand-alone, and can’t speak for Matthew, but I believe he felt the same way. Nobody was wowed with the merger with Claude and Silver Standard.

The point Matthew was making, which I agreed with, was that Claude was getting really overbought after starting its bull run before many of the other smaller producers and development companies got started. It likely would have pulled back a bit harder than some of the other companies just starting to take off (dirt cheap miners) that he was referring to, had it not been tethered to SSRI after the merger allowing it to continue the rise up based on its ratio to SSRI.

I don’t think Matthew was discussing longer term that Claude is better off with SSRI, and I know I wasn’t intending my comment to be interpreted that way. Just over the last few months, money invested in other smaller PM producers have played catch-up on a larger percentage basis than Claude would have on its own after moving earlier than the rest of the pack.

Hopefully that clarifies the difference between the short term out-performance of some of the other miners relative to Claude had it been left on it’s own, versus the longer term picture, where Claude would have fared MUCH better as a stand-alone company.

You’re right about my stance, Ex, but I think Chris still disagrees.

I just don’t believe that I was the only one selling it in order to buy much cheaper miners that presented the same opportunity (or better) that Claude did two years ago.

At the time the news came out, CRJ was already a ten-bagger and had erased all of its losses since the end of 2011.

http://schrts.co/SgJplo

…At the same time, SSRI was just over a month off of a 13 year low and ready to fly with the rest of the sector (a great tailwind) and was not even close to overbought and was still extremely cheap compared to its 2011 levels. In addition, silver miners were positioned to offer far more leverage to their metal than the gold miners were – and they delivered.

So I still believe that Claude would have had a hard time keeping up over the last few months. However, the coming months probably would have been a different story. With gold getting ready to shut the naysayers up, Claude would have been ready to ride again and quickly make up for any underperformance. Claude is a significant asset for SSRI so shareholders will still reap significant benefits from it.

http://schrts.co/32lK7R

All understood, guys — but unlike virtually all the other gold miners./explorers that rebounded, Claude had such a massive financial/operational turnaround that it more than ratified the huge move up from its subterranean bottom int he C12 cent/share area of a few years ago. Even after being a 10-bagger, it was still cheap by virtually every metric vs. other producers.

I can’t argue with that. Claude was NOT expensive despite its great run. In fact, since the day I sold it in January, my plan was to buy the entire position back later. Then came the announcement…

There’s no telling how high it could have gone in the years ahead.

Agreed on all points Matthew & Mr T. We’ll never know just how high Claude could have gone over the next few years on it’s own, but I agree its assets will be a big success for SSRI shareholders.

Honestly I feel the exact same way about Silvercrest getting gobbled up by First Majestic, and Lake Shore gold getting gobbled up by Tahoe. The quality assets are getting nabbed first of course.

Mr. Miller, I believe you are referring to an event under normal
circumstances. My argument if we do have a wide spread banking
collapse many financial institutions will fail. Especially, the big 5
banks. Unfortunately, would be contagion and that might affect
the vast majority in the banking system.

Even as you say, the Central Planners will come to the rescue but
where are the trillions going to come from. Economic activity is in
total collapse. To me, its frail and very unstable situation.

FDIC is extremely underfunded but then again we have a rescue
operation that would be in progress and I believe will fail. Definitely
you agree under a nuclear attack or EMP there is no hope.

You may disagree, but the odds of nuclear war is increasing by the day.

I think we can use all the conclusive evidence FDIC is not to be trusted
nor would any rescue operation even without a catastrophic event.

I certainly don’t have all the answers but we do know the banks have
depositors in great peril with the bail-in laws that are in their favor.

Besides, why would lawmakers pass such laws if they had the
citizens best interest at heart in any banking crisis. Why, because
the banks own the politicians and its a very dangerous time we are
living in.

Doesn’t sound trustworthy or sound decisions coming from the politicians.

LOOKS LIKE SOMEONE IS GOING TO GET RIPPED OFF !!!! The banks will be fine.

tj,

I actually am referring to a major bank failure and possible systemic risk to the banking system. Let me explain how it might go based on what I have read. If any systemically important bank become insolvent the FDIC, under the Orderly Liquidation Authority (OLA), plans on using a Single-Point-of-Entry (SPOE) Recapitalization Strategy.

The FDIC, as receiver for the failed bank, would replace the board of the failed bank. The FDIC then would create a bridge bank and transfer some or all of the assets and liabilities of the insolvent bank to the newly created bridge bank. Naturally only the good assets and liabilities would be transferred to the bridge bank. The stockholders will be wiped out and certain liabilities like unsecured debt would be written down or converted into equity (bailed-in). If needed, some uninsured deposits may also be converted into equity (bailed-in). The FDIC also would transfer the derivative contracts from the insolvent bank to the bridge bank which would prevent the derivatives counterparties from closing out the contracts and taking the collateral since the derivative contracts are now in the bridge bank which is solvent. This may help to limit any the derivatives blowup. The creation of the bridge bank also would allow the day-to-day operations to continue for depositors and the bank’s customers with only minimal disruptions. Now if the FDIC can accomplish this is would probably minimize any banking collapse. However if several big banks become insolvent in the same week then the FDIC would have it’s hands full and there would certainly be major disruptions and an increased likely hood of bank runs. Capital controls would need to be implemented. And probably hundreds of banks would fail over a short period of time.

tj, I think in general we agree. I was just pointing out that insured deposits are not part of the bail-in laws and going forward the real risk to insured depositors is the value of the dollar. As far as the FDIC is concerned, protecting the insured depositor is very important to them. If the FDIC insurance fund needs money, as long as the government can print it, they will get it. At the taxpayers expense of course.

Mr. Miller, all points well received and appreciated.
Excellent commentary and thoroughly explained in
legal terms as well.

I think our main differences lies in the severity of a
future banking crisis. Although your analysis sounds
very probable in the outcomes, it’s my contention no
one can really gauge how all these complicated multiple
party agreements and contracts would fair in a serious
banking crisis melt down.

With that being said, it all depends on the severity and
if it’s a real systematic failure that cannot be stopped
by intervention. After all the US is technically bankrupt.

I enjoyed the debate and quite frankly we really don’t
know how precious metals will perform. My original
suggestions, if someone must speculate in precious
metals I like physical silver for several reasons on this
forum. It’s gambling and even holding dollars could be
the same. Its a difficult decision. Silver is where I’m
leaning towards but of coarse not without risk.

We could have another buying opportunity in the months
ahead and patience maybe prudent.

Here’s the latest news with a possible and quite likely
nuclear war with Russia. All these investments and
future plans will be laid to rest if the Russian bear is
unleashed. Lets face it, America has been in decline
for more than 40 years. Morally, spiritually and financially
we are bankrupt. All Western nations are nearly the same.

http://www.presstv.ir/Detail/2016/06/02/468644/US-Russia-NATO-Baltic-drills-Jatras

Many don’t see any danger because they are blinded
by bad vices and moral values. IMHO the fuse is lit.

EVERYONE WAS WARNED. HEAD ON COLLISION WITH RUSSIA.

http://www.zerohedge.com/news/2016-06-03/americas-greatest-threat-its-crazed-leadership-and-its-brainwashed-population