Riding The Gravy Train: Very bullish on silver - long QTA, BVG, SSV, FRX

Riding The Gravy Train

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Monday, October 16, 2006

Very bullish on silver - long QTA, BVG, SSV, FRX

As of this writing, silver is at $11.57 USD per oz. We remain very bullish gold and believe this is an excellent entry point for silver.

Here we present a selection of four junior exploration companies with prospects of silver and other precious metals discoveries and compelling charts.

We have no holdings in these companies as yet, and plan to enter these over the course of the next few weeks. The idea here is to hedge bets, as with all such junior resource companies expecting no economically recoverable ore bodies to be discovered but hoping that one or two can be a big hit - a grand slam - which would more than make up for any losses the others might realize. Add that precious metals look ready for a move upwards after Friday's jump in gold, in contrarian action to the current outlook of most experts, and we believe juniors will be caught up in this next sector advance.

All four are part of the Manex Resource Group and all four trade on the Canadian Venture Exchange.

We list them here in our order of preference :

Long Quaterra Resources Incorporated, QTA at $1.55
Long Bravo Ventures Group, BVG at $1.27
Long Southern Silver Exploration Corporation, SSV at $0.56
Long Fortune River Resource Corporation, FRX at $0.43

Quaterra Resources Inc.
Bravo Ventures Group
Southern Silver Resource Corp.
Fortune River Resource Corp.

Currently we expect the general markets to run into the new year, perhaps after a shake-out pull-back of several hundred points in the DOW. In 2007 we fear dire consequences as the housing and credit economy collapses and markets turn sour. We will have added several short positions by then in preparation, probably divesting some longs. If that scenario develops, we expect gold and other precious metals to continue upwards while base metals turn down with the economy, and we remain bullish on oil and uranium even in an economic slowdown. We plan to be strapped-in for an economic "hard landing".