China’s largest silver producer

$48.6-million in cash, strong operations and the lowest production costs among its global peers.

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Message: Silver Eagle in trouble

If you makes you feel any better, you're certainly not alone. There isn't a single sector that I'm in that is up for the year. And I too am tired of the relentless bombardment of worthless charts and trend analyses.

I still do believe that commodities are a smart place to put money, even more so with the amount of selling that is going on in the sector. A global recession may negatively impact demand for commodities in the short term, but with the amount of mine production and development being put on hold, when demand returns to the marketplace, supply will not be able to respond rapidly enough to keep prices from heavily spiking. Oil, above all other commodities, will experience this in a powerful way.

While Silvercorp's earnings will be negatively impacted by the huge drop in commodity prices, they will still be able to generate healthy cash flow and this will sustain them no matter how bad prices get. Mines are dropping left and right and this will only improve our prospects once the market recovers and we sit with much higher cash reserves than our competitors. Then we go buying.

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