Silver Dragon Resources, Inc. (sdrg.ob)
Metals and Mining
- Surging Silver: In recent months, silver prices have continued their impressive climb. From 2000 to 2003 silver prices were continuing to hover at a level near or below $5.00. Since the middle of 2003, however, prices began to climb, and have done so continually since, with the growth showing no signs of abating. At present, prices are well over $12.00, with many analysts predicting further growth before reaching price equilibrium. Currently, silver is trading at a ratio of approximately 1:50 to the price of gold, a much more disproportionate ratio that the 1:16 ratio that silver saw during its apex in 1980, indicating great room for continued growth.
- Untapped Opportunities in China: Silver Dragon Resources owns a controlling 60% interest in Sino-Top Resources & Technologies, Ltd., a company that itself owns 100% of no less than nine separate projects in China. The Chinese silver mining industry has lagged in recent years, producing 1,300 metric tonnes in 1997, but virtually nothing from 1998-2001, most likely due to the stagnant silver prices during that period (Source: CountryWatch). Sporting the second largest economy in the world, a huge potential market and a rapidly growing economy provide powerful incentives for foreign investors to take their chances in China.
- Extensive Properties: As already noted, Silver Dragon Resources controls nine different projects in China. In addition, the company also holds concessions for two additional silver properties in Mexico. This diverse portfolio has the advantage of both increasing the likelihood of successful exploration, as well as mitigating the risk factors associated with resource exploration.
- Growing Market: The global precious metals and minerals market has performed well over the last five years, growing by 15.5% in 2004 to reach a value of $28.3 billion. Volume for all precious metals has increased since 2000 due to higher demand from industrial end users in Asia Pacific (Source: Datamonitor). With continued strong economic growth in Asia in general and China in particular, this demand should continue to support the price of silver.
Company Contact Information
1121 Steeles Ave W
803
Toronto, ON, M2R 3W7
CANADA
- Phone:416-661-4989
- Fax:n/a
- E-mail:info@silverdragonresources.com
On-line contact form
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