SILVER (Ag) PRODUCERS

[NYBob]

Happy Holidays, Happy New Year and Our Global Themes For 2007 -

One can find humor anywhere -
like to quote from a piece of research by an analyst from
one of the world’s largest financial institutions that -
the other day, “China’s industrial output only recovered
marginally from last month’s slump.
Real value added of industry rose 14.9% in November
from 14.7% in October….
Industrial growth may rebound early next year.”

Excuse me? What universe does the writer come from?

Economies only very, very rarely grow at 10%.
Industrial output growth at 14.9% is astoundingly high
for any economy, in almost any situation,
in any part of the world.
Maybe it is a slight slow down from China’s growth rate
a couple of months ago, but let’s be realistic, if you
grow industrial output at 14.9% per year, you have
doubled output in only five years thanks to the wonders
of compounding.
So, while the world’s most populous country is on pace
to double their output in five years, India, the world’s
second most populous country, along with many other
countries are not exactly dawdling along.
They are also growing briskly.

The growth we are witnessing today in China, India, Russia,
Brazil and other countries does not occur every few years.
It occurs once every few hundred years.
We are in a new industrial revolution that is gigantic
in its scope and most people in the developed countries
have yet to realize it.

This brings us to some the themes for 2007.


THEME #1: THE GLOBAL ECONOMY AND THE DISTRIBUTION OF WEALTH AND
CAPITAL WILL INCREASINGLY RESEMBLE THAT OF THE 1500’S

In the 1500’s, the major economies of the world were India,
China and Persia (much of whose wealth came from their
conquest of India).
Europe was relatively poor, and much of the currently
developed world was very sparsely inhabited.

The global economic landscape began to change after Europeans
began to view education, mathematics, scientific discovery,
and commerce as noble pursuits.
Technological innovation followed, and a few hundred years
later, the Industrial Revolution that we all studied in
school gave Europeans the ability to efficiently manufacture
goods (including weapons), and to transport people and
goods great distances.
Europe and the European colonies in North America, Australia,
New Zealand, and in some parts of South America, Africa and
Asia gained access to new manufacturing technologies.
The former leaders, China, India and Persia remained agrarian,
although they had a great many cultural and intellectual
achievements.
Thus, the Europeans and their colonies came to eventually
dominate global trade.

Today, much of the world’s economic growth is coming from China,
India and other developing countries where
capitalism and entrepreneurship are being embraced.
These developing nations are shifting from agrarian
economies to newly industrialized economies.
The developing world’s growth rate is about four to five
times faster than the rate of that of the large developed
countries.
At their current rates of growth, or even at part of
their rates of growth, India and China will dominate
the world economy by middle of this century.
The numbers of people they will bring into the developed
economy is large, to say the least.


THEME #2: TODAYS DEVELOPED WORLD MOVES TOWARD THE SWISS
ECONOMIC MODEL

What will happen to today’s developed world now that
manufacturing and much else is going to lower cost
higher efficiency developing countries?
What is the comparative advantage of the developed nations?
What makes them attractive?

The developed nations are much of Western Europe, Canada,
U.S., Japan, Australia, New Zealand and a few nations in Asia.
Characteristics of these developed countries that make
them attractive are:
good system of education, ambitious populace
(in some countries), good legal system, accurate and
honest accounting, a tradition
of laws (one can go to court and get legal redress in a
few years), available insurance, and an educated work force.
Furthermore, they typically have strong banking and
financial services.
This allows entrepreneurs to get the capital they need to
grow, and gives investors the opportunity to fund growth
and innovation.
Thus, new products and services are constantly being developed.

Additionally, the better developed countries do not have
a strongly imbedded class system. The dignity of work is
much derided in countries with an imbedded class system,
which creates impediments to economic growth and personal
success.
In general, these are societies which respect the concepts
of hard work and success.

Finally, developed countries often have less corruption and
much more transparency than exists in other parts of the world.
The newly industrializing countries are still grappling with
considerable amounts of corruption that can make it harder
for outsiders to earn a fair return if they don’t have
powerful economic and especially political contacts.
Outside investors and business people can sometimes be
viewed as victims to be manipulated.

Industries which will continue to provide profits in the
developed world are: farming (especially those using new
technologies), mining, forestry, energy production, high
tech software and hardware, specialty manufacturing,
medical tech,
bio tech, medical services delivery, and those helping
provide access to financial innovation and markets worldwide.


THEME #3: THE TIMING OF PURCHASES AND SALES WILL BE MORE IMPORTANT IN 2007

Many of the world stock markets have run up and are currently
priced for perfection.
Based on any type of historical analysis, world stock
markets and commodity markets are not cheap. However,
positive economic tailwinds from rapid global growth
are strong.
So what to do? We suggest wait for the inevitable market
declines in the fast growing markets, and then buy on dips.


THEME #4: THE DOLLAR CONTINUES TO DECLINE, SO PROFITS WILL BE
FOUND IN FOREIGN CURRENCIES

We favor the British Pound, Euro, Swiss Franc, and
Australian Dollar.
Historically, global oil sales were denominated in U.S. dollars,
and many countries, including China held mostly U.S. dollars
in their huge foreign exchange portfolios.
It seems that many countries, including many of the oil
producing nations, and China have determined that the U.S.
dollar should be a smaller part of their portfolios.
Thus, a weaker U.S. dollar is in store for some time to come.


THEME #5: PRECIOUS METALS AND BASE METALS WILL CONTINUE TO RISE

Demand is strong, and will continue to be strong for the base
metals needed to create the infrastructure and capital goods
which are the vehicles of economic growth.
Once economic growth is achieved many, newly affluent and
middle class individuals will want to hold some of their
assets in gold.
As global growth continues, so will the demand for
gold and other stores of value.


THEME #6: OIL HAD A RISE TO $78 A BARREL, BUT HAS PULLED BACK
DUE TO WARM WEATHER. IF THERE IS A CRISIS IN THE OIL
PRODUCING WORLD, ENERGY PRICES WILL CONTINUE TO GO UP

Without a crisis, the rise will be labored. Global demand is
growing and production is strained. We continue to hold energy,
but not as large a proportion as in the past. Danger to the
worlds energy supply is at the greatest level in many decades.
However, alternative fuels and substitution will make the long
term supply issues less important.

In our opinion, the developed world must get on the energy
conservation and substitution bandwagon now.


THEME #7: THERE ARE ALWAYS INTERESTING INDUSTRIES THAT ARE
CREATING INVESTMENT OPPORTUNITIES, FOR EXAMPLE:

1. Narrow body planes and regional jets for carrying people
around within fast growing countries like India, China, Russia
and Brazil.
As the middle classes in these countries grow,
demand increases for narrow body airplanes to fly people
around within these countries.
Many new flights between cities in South America and Asia
are being scheduled as people travel more on businesses
and pleasure.
Suppliers of aircraft or their parts are one way to invest
in this.
2. The electrical transmission grid in the United States and
many other countries has fallen into disrepair.
Companies involved in the rebuilding the electric
transmission grid in
the U.S. and many other developed countries are
becoming attractive.
3. Alternative energy companies such as: clean coal (the
technology for this exists), solar power, hybrid vehicles
will provide opportunity.
4. Banking and financial services in the developing world
will provide opportunity. banking in China has been opened to
foreigners, and it is expected that banking in India will be
opened to foreigners in 2008.
5. Stock and commodity exchanges serving the people and
companies of the developing world should continue to expand.
6. The emerging world’s demand for food, base metals, timber,
industrial raw materials, engineering know-how, technology
know-how, business know-how, educational services, business
services, software, high tech hardware, medical technology,
pharmaceuticals will be in increasing demand for years to come.
by Monty Guild

I don't mind to wait to higher PM's -
Ex. Franklin FMNJ - Gold & Silver -
and the demands for base metal prices -
to go to new highs in 2007 -

Most majors PM's producers love to takeover -
smaller companies with large Au & Ag reserves -
its most important that the smaller comp. safe -
guard themself and their Shareholders -
against the takeover raiders -
from larger comp. out to buy them out! -

When the open interest of Bucky going high -
its plenty of Bucky available and not many -
want the poor Bucky into much debt problems -
the risk for it to fall of the cliff isn't good -

it's a Blessing that old Franklin hasn't started
the mining -
it makes the FMNJ PM's reserve in the hardrock -
to be the safest treasure PM chest safety-box -
going higher with steady increase -
of the LT Res. PM's markets bullion values -



Rhodium $5030.- per ounce -
Silver LT to follow -

http://www.kitco.com/LFgif/rh0030lnb.gif


Its a start - Silver above $800.- per ounce in 1477 -



http://www.gold-eagle.com/editorials_03/images/waltzek091003a.jpg

fig. the inflasion since - the Silver would be much more
than $8000.- per ounce today -
(if it was a fair market playingfield -
without ratchillz banksterz manipulated the market -
since the past 500 years) -




Are the lemmings following LT Bucky? -
U.S $ INDEX (NYBOT:DX) -



FMNJ - dd --
http://www.franklinmining.com/Home/tabid/1215/Default.aspx

FMNJ - Cerro Rico - Inca - Potosi or “Rich Mountain” -

great bonanza periods have been reported for the quality
of the mineral, with ore contents between 1,500 and
9,000 Silver ounces per ton -

and est. reserves are about 938,130 kgs of Silver -
by very shallow drilling -

250,004 tons of zinc - by very shallow drilling -
dd --

The Worlds Richest Silver Mines -
has been mined for more than -
- 500 years -




Est. 1864 -

http://www.franklinmining.com/Projects/HardRockProjects/CerroRicoPalivariIIAlternativeIIIBolivia/tab....

http://www.investorshub.com/boards/board.asp?board_id=5406




Happy Holidays,
Merry Christmas & Hanukkah -
looking forward to hearing your thoughts and comments.
May your New Year be filled with health -
happiness and success -
wish it to be great -
a friend loves at all times -
FMNJ - Mission