Tara Gold Resources (fka TRGD)

[Mamona]

2 years ago, the economy was allegedly in good shape. The funds that had miners in them as a hedge or as a commodity asset, were comfortable to have them as a small position in their allocation.

After Sept. 2008, and the financial market blowup, funds had to redeem any assets they could and the miners and commodities took a bigger hit because they were the strongest assets in fund portfolios that were overweighted with Citi or AIG; thus they were hit hard, but disproportionately so.

The gold stocks are recovering while the dollar is toast.

SVM.TO has a story that Rich can hope he will be able to tell to institutional investors one day.

http://www.theaureport.com/pub/na/3289

Silvercorp was able to finance their mine building out of their exploration by-product. They were exploring by drifting (tunneling) along the mineralization, and were able to take the profit from that to pay for sinking shafts and digging more tunnels. They built their mine without a formal feasibility study or formal proven or probable mining reserves. Very cool, but here's the thing: the project has matured to where Silvercorp can produce formal proven and probable mining reserves. That will change the game, because there are some institutional investors that cannot invest unless a company has P&P mining reserves. According to the U.S. regs, those shady measured and indicated resources Canadians use don't even exist. According to the U.S. SEC, unless you have proven and probable mining reserves, you have nothing. So when Silvercorp can start reporting a very high-grade asset, it will change the dynamics of their market.