I do not post frequently on this forum anymore, but I still show up almost every day to read comments from the people who have earned my trust and respect over the years. Lately I have been too busy writing and touring mine projects, plus keeping up with my own website, to have much time left over to contribute to other forums. And also, I have very little left to say that is new about AUM. The story has not changed one bit from when I was buying more @ $12, and more before that @ $18 or so. As for the metals and the PM sector, the story has only become more bullish even as the selling has intensified.

Stop to consider when silver was on the threshold of $50 and it was hard to find a bear anywhere. I still believe it was only the intervention of the CME group to rape longs with the margin increases that has provoked the decline to where we are today. Without that no doubt silver would have corrected, and dramatically so, but once they got the longs on the run, the regular and recurring carpet bombing in access trading, plus the final insult with the MF Global ripoff, has put the metal where it is today.

Now a few overly pompous and self righteous twits have been pounding their chests about their own predictive skills, while at the same time projecting much lower lows for silver still to come. I simply pose the question to the uber bears: What do these people contribute that is profound or even useful to the discussion that is any different from the bulls being hyper-bullish at the start of the year? If people were so quick to denounce the bulls for their enthusiasm near the top, how can the same bozos play the exact same game on the bearish side near the bottom? I thought they were so much smarter than everyone else? Or not...

And that is all I have to say about silver right now. The wet blanket of bearish sentiment is at the extreme now that will generate a slingshot move higher in reaction, just as the price of silver fell down the stairs at the opposite extreme. Whether it was pushed or would have fallen on its own is a moot point. The fact is we are on the verge of a rebound now and what are people planning to do? The same for the junior mining stocks, like AUM.

At least we can wait for the recovery with confidence given the strong cash position on the balance sheet. And the entire sector is in the same boat in terms of a tragically low share price. The average silver junior is off about 50% this year, which is the kind of correction that would have most mainstream investors ready to jump off tall buildings. Those who have been hanging in up to this point are unlikely to be shaken loose now.

I have not sold a share since well before the merger announcement, and I have been able to add more AUM a few times this fall. I am still fully confident in the story and still watching closely to see how the company performs. And one big bonus on a personal standpoint, because ECU is not running an ad on my website anymore, I do not have to listen to comments from fakken idiots to suggest I am a paid shill. My opinion has always been factual, honest, and openly shared for anyone to consider.

Take a few days to celebrate the new year, and think of all the reasons we have to be happy. This correction will pass, as have many others along the way during this bull market. Those who are reading this post still represent the tiny minority of investors that have a clue about silver, gold, and mining stocks. We are way ahead of the curve. Eventually this bull market will transition into a mania phase. Meanwhile we can look forward to a hefty rebound in 2012 and hopefully the stress level will come down for those who are anxious today.

cheers!

mike