Will Gold/Silver Mining Shares Ever Payoff?

I am a die hard Gold and Silver Bug...to the core. If you are reading this article I assume that you are too and at some point over the past 10 years you have bought gold/silver mining shares after analyzing the markets and determining that metal "in the ground" is sold for a fraction of the price as metal above ground. A common understanding is that mining shares are "leveraged to the price of the metal" such that when the prices of gold and/or silver rise the mining shares should rise exponentially.

Being the brilliant investor that you are and having figured out that governments and bullion banks around the world are illegally manipulating the prices lower, the added leverage gained from owning the mining shares will make you rich beyond your wildest dreams when the manipulation ends! The years of people laughing at you for being a rabid gold bug will finally pay off and YOU will be the one laughing all the way to the bank. Well, maybe not to a BANK, but somewhere you can store your winnings and live the rest of your days in luxury!

I too was in your camp and rode the mining share roller coaster for a very long time taking the wins and losses in stride knowing that at some point I would "cash in". All that changed about 2 years ago when I realized I was underestimating the magnitude of what gold and silver manipulation means and the scenarios that may play out as the manipulation ends.

First of all I'd like to tell you that I don't have all the answers for you, but I do have a deep understanding of the Gold/Silver manipulation issues and my current stance on the mining shares was developed by extrapolating different scenarios mixed with some common sense.

The question is... "Will mining shares payoff more than physical metal when the manipulation ends?" My answer is "maybe" but only if the fiat monetary system stays intact. If the coming monetary crash is as serious as I think it will be, I don't see mining shares ever paying off! Don't misunderstand what I'm saying here. I know that mining companies hold MASSIVE wealth in the ground. THAT'S THE PROBLEM! It's not that the company's reserves aren't valuable...IT'S THAT THEY'RE TOO VALUABLE!  (more)