These long-term opportunities can earn you the greatest profits. Coeur D'Alene Mines burrows in the earth for silver, and with supplies getting scarce, silver prices could rise. You buy metals as a hedge against inflation, and with the Fed willing to risk such inflation to save the economy from recession, this might be a stock to buy. While we've heard that before about silver and its cousin gold, Coeur D'Alene has unique properties that may make it ripe for growth.
CAPS investor sam07 believes that the troubles the company faced earlier this year are now behind it, and that Coeur D'Alene has made strategic acquisitions to position it for the future:
CDE has taken a beating in the last few months, paying high premiums to replenish its silver reserves for the years to come and encountering environmental setbacks. Costs, increasing environmental concerns and rarity make it harder and more expensive to mine, for everybody in the industry. They've just been hit harder than their competitors this year; everything happened at the same time.
CDE is in a simple market: mine silver, sell silver. As long as they have silver, they have cashflow. The company is in place, the clients are there, the management is there. With the matter of the reserves settled for now, money will keep coming in. They didn't pay a premium for nothing; these reserves will be worth it in the long run.
CDE will within a few years emerge as the silver world leader. A metal for which there will always be demand. Wait for a good entry point. Undervalued stock right now but you might have it for even cheaper in the months to come ...