Comstock Inc (LODE)

[TMLonggun]

the potential seems astronomical

It is astronomical, but it is just that - potential. My backyard has lots of silver - if I went all the way to the center of the earth but that is not feasible so for all intents and purposes my backyard has no silver.

Lode is the rough equivalent. They have silver, they may even have a lot of it but if it costs them 10-20% above spot to mine each ounce for all intents and purposes they might as well have no silver or gold whatsoever. Economic resources and profits are all that matters. Lode has proven that they have neither. Eventually I think that they will have both of those things but it will be a long term process if metals are flat. There will be lots of time to get in down the road if that is your desire. I would even rather pay $1.5 and purchase a profitable lode than speculate at these levels although you should be able to quite easily if that is your desire.

In this market why buy potential pie in the sky when you can buy real profitable miners that are making money hand over fist? The only reason to do so would be if the risk/reward equation was especially favourable.

You don't think that just the sheer amount of gold/silver on the Comstock will make this stock the one to be in?

They need to eventually drill something equivalent to the historic bonanzas - something I think that is not only possible but actually quite likely. They might discover something next year or in ten years or not at all.

Silver is one of my favourite metals and long term I think it highly likely it goes above $100/oz. Such a scenario should make the Comstock Lode absurdly valuable and function as a great marketing gimmick. But that is a speculation. My whole point is that in this market, August 2015, there is not much reason to speculate with high risk, low return because you can now invest instead with much lower risk and make safer, high returns.

If lode earns some profits and dramatically lowers their AISC per ounce and continues to discover resources that are higher grade than they are currently mining then they will do fine. That's a mouthful. It might be prudent to look at those companies that are already doing it now instead of might be able to do it in the future.

All IMO.