Counting the unprecedented amounts of private and personal debt in Europe and the USA is an impossible task. Just imagine to first identify all data input sources only to arrive at the point where debt data has to be offset with savings data, equa(tiona)lly difficult. As all this would be too much of an unreachable perfect world I first throw a couple of figures – like in Texas Hold’em poker – on the desk before telling you the exact amount of the Western world’s debt.

• World GDP: $50.000.000.000 (TRILLION)
• US GDP: $14.000.000.000 (TRILLION)
• Notional value of OTC derivatives >$700.000.000.000 TRILLION
• Unfunded US liabilities: > $134.000.000.000.000 (TRILLION)
• 2009 US Deficit: who knows (after all budgetary tricks?)

I may remind readers that the 10 most-indebted countries in the world are the USA by a long shot, followed by 9 European nations. And now after the jump see the exact figure of Western debts.

In my humble opinion the debt is

Once we are at exponentially creating new TRILLIONS macro data are no more guidance for a manipulated stock market, where the privileged few appear to have a pre-order order-flow monitoring in operation. Ironically it’s said HFT (high frequency trading) computers trashing the debt system where it’s not anymore about investing into a company’s future but about moving the Himalayas everyday in order to take home a cobble stone. Can somebody dig in the archive when the first 100 million hostile takeover filled business paper’s pages? I bet its not more than 25 years.
It makes no more sense to bet on a get-out-the-dollar card in the monopoly of debt played nowadays. Federal Reserve Notes will fade sooner than most of us believe. Better be out several months ahead then 1 day too late. The Euro may be around a little longer than Sterling, which may share its last ride with the USA. The faster this biggest write-off in history is behind us, the earlier one could draw plans that include the lessons learned in this global financial meltdown.
One thing is undeniably correct: All unbacked paper currencies devalued more than 90% within a human lifespan. In most cases this happened much faster. To now begin again another draft for the modification of a sure-to-fail fiat money concept that always ended in hyperinflation since 1720, when John Law started financing the French king’s parties with in specie currency, is like trying to plant palm trees in the Antarctic.
Why is there no discussion of a metal standard among the armies of economists that would shine out from the mass accepting fiat currency without second-questioning it first?
UPDATE: The financial Tsunami may arrive quite soon, if this FASB proposal will become legislation, forcing all risks on the balance sheets of banks at mark-to-market.

As this list of silver companies published in 2007 has become the most-read blog post this year I felt compelled to update it.
Compiling a list of silver companies is controversial as there are only very few pure silver plays.
The white metal is mostly mined in combination with gold or base metals which can dramatically change the bottom line of silver miners. In some cases the mining of base metals and gold can lead to negative cash costs for every ounce of silver produced.
Silver is primarily used in jewellery and the best metallic electric conductor. For more applications for silver check this webpage by preciousmetalinvestment.com.
Expecting silver prices to multiply in the next 5 years these companies give extra leverage – if their plans come true.
All silver stocks got hammered in 2008 in the biggest crash in the mining sector in the last 80 years. Do your own research as some companies are trading at less than the cash they have in the till.
While the IPO train on Wall Street has become a train wreck due to the hesitancy of investment banks when underwriting new issues, junior miners are not dependent on conventional measures to raise capital.
They (better) know how to attract investors with a long term horizon directly, as I was able to witness myself when living in Vancouver in 2007.
Vancouver stock exchange is the primary market for junior miners for all kinds of resources. The market had had a shady reputation in the 1980s but has cleared up his act by establishing mandatory reporting rules for junior miners. Its most important improvement was the introduction of standards for reporting new metals reserves.

GRAPH: Silver is a lot more volatile than gold while physical demand is unprecedented. The Austrian Mint produces silver Philharmonics 24/7 since introducing this bullion coin in 2008. Silver currently trades at a ratio of 1:63 to gold. In the long term this ratio has been closer to 1:15, leaving enormous upside potential for silver that could easily lead to a price around $40 next year. Chart courtesy of stockcharts.com.

I consider investments in exploration companies as very risky and build up positions very slowly. But they come with a notable exception to the golden rule that for every percentage point of possible reward there is an equal risk.
In the case of explorers/developers there is an exception to the rule: As long as one invests without leverage there is a risk of 100% but a multiple of that in possible gains when an explorer hits silver indeed. When researching risky investments like this very small sector with only a few billions in market capitalization I look mainly for the following:

• Quality of management. Check the track record of management in past mining ventures.
• Management’s stake in the company. If they don’t sell or even buy more it is usually a good sign.
• Delays. Are there any delays in realizing the company’s ventures ?
• Cost per ounce. What are the company’s cash costs per ounce produced? How much do I pay per ounce when I buy their shares?
• Institutional shareholders. Which funds own the company, which analysts cover the stock?
• Proximity to production. Potential gains are higher with explorers in the early stages, but so are the risks. I like companies in the process of finalizing the feasibility study for financing or – at a later stage – companies that are close to production.
• Political risk. Your due diligence has to include the respective stability of the country where your miner digs the money out of the ground.

In respect of the political risk I also shun US based silver miners as there exists a possibility that the government can nationalize virtually any company under the Trading With the Enemy Act, which became law in 1917 during World War I and applies during declared wars, and from 1977’s International Emergency Economic Powers Act, which can be applied without declared wars. Read more on this issue on GATA’s website.
Marc Courtenay has recently penned a story at SeekingAlpha that deals with the possibility of another confiscation of gold and silver and mining shares by the US government. Seeing all the current nationalizations of car makers, banks and the health sector in the USA I don’t rule out anything anymore.

List of Silver Explorers, Developers and Miners
Here comes the list of more than 100 silver companies (click the name for the company’s website and the ticker symbol for price information):

Abcourt Mines (ABI.V): Gold, silver and zinc in Quebec
Alexco Resource (AXR.TO): Silver in Canada
Apogee Minerals (APE.V): Silver, lead, zinc in Bolivia
Aquiline Resources (AQI.TO): Silver and gold in Argentina, Canada and Mexico
Arian Silver (AGQ.V): Silver in Mexico
Aura Silver (AUU.V): Silver in Canada, El Salvador, Mexico, USA
Aurcana (AUN.V): Silver, gold, lead, zinc in Mexico
Aurex BioMining AG (not listed): Silver in Austria
Avino Silver & Gold Mines (ASM.V): Silver, gold, zinc, copper, lead in British Columbia
Bear Creek Mining (BCM.V): Silver, gold in Peru
Canadian Zinc (CZN.TO): Silver, zinc, and lead in Canada
Canarc Resources (CCM.TO): Silver in South America
Canasil Resources (CLZ.V): Silver, gold, copper, lead, zinc in British Columbia and Mexico
Capstone Mining (CS.TO): Silver in Mexico
Chariot Resources (CHD.TO): Silver and copper in Peru
Chesapeake Gold (CKG.V): Silver, gold, zinc in Mexico and the USA
CMC Metals (CMB.V): Silver in Canada
Coeur d’Alene (CDE): Silver and gold in Argentina, Bolivia, Chile, Mexico, USA
Compania de Minas Buenaventura (BVN): Precious metals in Peru
Continuum Resources (CNU.V): Silver, gold in Mexico
Cornerstone Resources (CGP.V): Gold, silver, copper, nickel, VMS, potash, and uranium properties in Canada and Ecuador
Cream Mineral Resources (CMA.V): Silver, gold, base metals in Canada, Mexico and Sierra Leone
Dia Bras Exploration (DIB.V: Silver, copper, zinc in Mexico
Eagle Plains Resources (EPL.V): 35 gold, silver, uranium, copper, molybdenum, zinc and rare earth mineral projects in Canada
Eastfield Resources (ETF.V): Gold, copper, silver, nickel, molybdenum and Platinum Group Metals in Canada and USA
ECU Silver Mining (ECU.V): Silver, lead, zinc in Mexico:
Endeavour Silver (EDR.TO): Silver in Mexico
Esperanza Silver (EPZ.V): Silver in Mexico, Peru
Excellon Resources (EXN.TO): Silver in Mexico
First Majestic (FR.TO): Silver in Mexico
First Point Minerals (FPX.V): Silver, gold, base metals in Mexico and the Americas
Fortuna Silver Mines (FVI.V): Silver in Mexico
Fury Exploration (FUR.V): Silver in Canada
Genco Resources (GGC.TO): Silver in Mexico
Gitennes Exploration (GIT.TO): Silver, gold copper in Peru
Gold Hawk Resources (CGK.V): Gold, silver, lead, zinc and copper in Peru
Golden Goliath Resources (GNG.V): Silver, gold in Mexico
Great Panther Resources (GPR.TO): Silver in Mexico
Hecla Mining (HL): Silver, gold in Mexico and USA
Hellix Ventures (HEL.V): Silver, gold in Mexico
Herencia Resources (HER.L): Silver, lead, zinc in Chile
Hochschild Mining (HOC.L): Silver in Argentina, Chile, Mexico, Peru
Huldra Silver (HDA.V): Silver in Canada
Impact Silver (IPT.V): Silver in Mexico, Dominican Republic
International Minerals (IMZ.TO): Silver, gold in Ecuador and Peru
Intrepid Mines (IAU.TO): Silver, gold in Australia and Indonesia
Journey Resources (JNY.V): Silver, gold, lead, zinc in Mexico, Peru, USA
Kenrich-Eskay (KRE.V): Silver, gold in Canada
Kimber Resources (KBR.TO): Silver, gold in Mexico
Kings Minerals (KMN.AX): Silver, gold, copper, rhenium, molybdenum in Australia and Mexico
Klondike Silver (KS.V): Silver in Canada, Mexico
LKA International (LKAI.OB): Silver, gold in USA
Logan Resources (LGR.V): Precious metals, base metals and uranium in Canada
MacMillian Gold (MMG.V): Silver, gold in Mexico
MacMin Silver (MMN.AX): Silver in Australia
MAG Silver (MAG.TO): Silver in Mexico
Marifil (MFM.V): Silver, gold, base metals in Argentina
Mexican Silver Mines (MSM.V): Silver in Mexico
Milner Consolidated Silver Mines (MCA.V): Silver in Canada
Minefinders (MFL.TO): Silver, gold in USA
Minera Andes (MAI.TO): Silver in Argentina
Mines Management (MGT.TO): Silver, copper in the USA
Minco Silver (MSV.TO): Silver in China
Mindoro Resources (MIO.V): Silver, base metals in the Philippines
Mountain Boy Minerals (MTB.V): Silver, gold, base metals in Canada
Normabec Mining (NMB.V): Silver, gold in Canada and Mexico
Orko Silver (OK.V): Silver in Mexico
Oremex Resources (ORM.V): Silver in Mexico
Oro Silver (OSR.V): Silver in Mexico
Pacific Comox Resources (PCM.V): Silver, gold, molybdenum, base metals in Canada
Palmarejo Silver and Gold (PJO.V): Silver, gold in Mexico
Pan American Silver (PAA.TO): Silver in Bolivia, Mexico, Peru
Pershimco Resources (PRO.V): Silver, gold in Mexico
Piedmont Mining (PIED.OB): Silver, gold in USA
Portal Resources (PDO.V): Silver, gold in Mexico, USA, gas and oil in Mexico
Quaterra Resources (QTA.V): Silver in Mexico
Redcorp Ventures (RDV.TO): Silver, gold, copper, lead, zinc in Canada
Revett Minerals (RVM.TO): Silver, gold, copper in USA
Sabina Silver (SBB.V): Silver in Canada
Scorpio Mining (SPM.TO): Silver in Mexico
Silvercorp (SVM.TO): Silver in China
SilverCrest Mines (SVL.V): Silver in Chile, El Salvador, Mexico
Silver Dragon Resources (SDRG.OB): Silver in China
Silver Eagle Mines (SEG.TO): Silver in Mexico
Silver Fields Resources (SF.V): Silver in Canada, Mexico, USA
Silver Grail Resources (SVG.V): Silver in Canada
Silvermet (SYI.V): Silver in Canada, Turkey
Silvermex Resources (SMR.V): Silver in Mexico
Silver Quest Resources (SQI.V): Silver in North America
Silver Standard (SSRI): Silver in Argentina, Australia, Mexico, Chile, Peru, Canada, USA
Silverstone Resources (SST.V): Silver in Mexico
Silver Wheaton (SLW): Silver in Greece, Mexico, Peru, Sweden
SNS Silver (SNS.V): Silver in the USA
South American Silver (SAC.TO): Silver in Bolivia, Chile
Southern Silver (SSV.V): Silver in Mexico, USA
St. Eugene Mining (SEM.V): Silver, lead, zinc in Canada
Starcore (SAM.TO): Silver, gold in Mexico
Stealth Minerals (SML.V): Silver, gold, copper in Canada
Sterling Mining (SRLMQ.PK): Silver in USA
Stroud Resources (SDR.V): Silver, gold, natural gas in Mexico
Teryl Resources (TRC.V): Silver, gold, copper in Alaska
Tumi Resources (TM.V): Silver in Mexico, Sweden
UC Resources (UC.V): Silver, gold in Mexico
US Silver (USA.V): Silver in the USA
Valencia Ventures (VVI.V): Silver in Australia, Canada, Chile, USA
Yale Resources (YLL.V): Silver in Mexico

Useful links for research and information on silver companies:

• 24hgold.com my first stop for mining research. Will be soon the most extensive database on resource stocks, currently in beta phase.
• Canadian silver stock list with key figures
• Kitco Silver
• Miningnerds silver stock list (cool)
• Silveraxis
• Silverseek
• Resource Stock research portal

NOTE: Please email me if I have missed out on one or more silver companies in order to update this list.

The surge of silver prices after the usual summer correction is a fitting impulse to publish this list of mostly Canadian-listed silver companies.
Companies are grouped into explorers/developers and producers. Compiling a list of silver companies is controversial as there are only very few pure silver plays. The white metal is mostly mined in combination with gold or base metals.
Seeing silver prices multiplying in this decade these companies give extra leverage – if their plans come true. As I am still scouting the sector for more purchases I do not disclose my current holdings.

GRAPH: Silver seems to have ended its correction. The metal is a lot more volatile than gold. Fundamentally a 16-year supply deficit speaks for itself. Silver currently trades at a ratio of 1:50 to gold. In the long term this ratio has been closer to 1:15, leaving enormous upside potential for silver that could easily lead to a price around $25 next year. Chart courtesy of stockcharts.com.

I consider investments in exploration companies as very risky and build up positions very slowly. But they come with a notable exception to the golden rule that for every percentage point of possible reward there is an equal risk. In the case of explorers/developers there is an exception to the rule: As long as one invests without leverage there is a risk of 100% but a multiple of that in possible gains when an explorer hits silver indeed.
When researching risky investments like this very small sector with only a few billions in market capitalization I look mainly for the following:

* Quality of management. Check the track record of management in past ventures.
* Management’s stake in the company. If they don’t sell or even buy more it is usually a good sign.
* Delays. Are there any delays in realizing the company’s ventures ?
* Cost per ounce. What are the company’s cash costs per ounce produced? How much do I pay per ounce when I buy their shares.
* Institutional shareholders. Which funds own the company, which analysts cover the stock?
* Proximity to production. Potential gains are higher with explorers in the early stages, but so are the risks. I like companies in the process of finalizing the feasibility study for financing or – at a later stage – companies that are close to production.

Here comes the list of 62 silver companies (click the name for the company’s website and the ticker symbol for price information):

Explorers/Developers
Abcourt Mines (ABI.V): Gold, silver and zinc in Quebec
Alexco Resource (AXR.TO): Silver in Canada
Apogee Minerals (APE.V): Silver, lead, zinc in Bolivia
Arian Silver (AGQ.V): Silver in Mexico
Aquiline Resources (AQI.TO): Silver and gold in Argentina, Canada and Mexico
Avino Silver & Gold Mines (ASM.V): Silver, gold, zinc, copper, lead in British Columbia
Aurcana (AUN.V): Silver, gold, lead, zinc in Mexico
Aura Silver (AUU.V): Silver in Canada, El Salvador, Mexico, USA
Baja Mining (BAJ.TO): Silver, copper, cobalt, manganese, zinc in Mexico
Bear Creek Mining (BCM.V): Silver, gold in Peru
Canasil Resources (CLZ.V): Silver, gold, copper, lead, zinc in British Columbia and Mexico
Continuum Resources (CNU.V): Silver, gold in Mexico
Eagle Plains Resources (EPL.V): 35 gold, silver, uranium, copper, molybdenum, zinc and rare earth mineral projects in Canada
Esperanza Silver (EPZ.V): Silver in Mexico, Peru
First Majestic (FR.V): Silver in Mexico
Fury Exploration (FUR.V): Silver in Canada
Genco Resources (GGC.V): Silver in Mexico
Huldra Silver (HDA.V): Silver in Canada
Klondike Silver (KS.V): Silver in Canada, Mexico
MAG Silver (MAG.V): Silver in Mexico
Mines Management (MGT.TO): Silver, copper in the USA
Mexican Silver Mines (MSM.V): Silver in Mexico
Minco Silver (MSV.TO): Silver in China
Orko Silver (OK.V): Silver in Mexico
Oremex Resources (ORM.V): Silver in Mexico
Oro Silver (OSR.V): Silver in Mexico
Palmarejo Silver and Gold (PJO.V): Silver, gold in Mexico
Pershimco Resources (PRO.V): Silver, gold in Mexico
South American Silver (SAC.TO): Silver in Bolivia, Chile
Sabina Silver (SBB.V): Silver in Canada
Silver Dragon Resources (SDRG.OB): Silver in China
St. Eugene Mining (SEM.V): Silver, lead, zinc in Canada
Silver Eagle Mines (SEG.TO): Silver in Mexico
Silver Fields Resources (SF.V): Silver in Canada, Mexico, USA
Stroud Resources (SDR.V): Silver, gold, natural gas in Mexico
Silvermex Resources (SMR.V): Silver in Mexico
SNS Silver (SNS.V): Silver in the USA
Scorpio Mining (SPM.TO): Silver in Mexico
Silver Quest Resources (SQI.V): Silver in North America
Southern Silver (SSV.V): Silver in Mexico, USA
Silver Grail Resources (SVG.V): Silver in Canada
SilverCrest Mines (SVL.V): Silver in Chile, El Salvador, Mexico
Silvermet (SYI.V): Silver in Canada, Turkey
Tumi Resources (TM.V): Silver in Mexico, Sweden
UC Resources (UC.V): Silver, gold in Mexico
US Silver (USA.V): Silver in the USA
Valencia Ventures (VVI.V): Silver in Australia, Canada, Chile, USA
Yale Resources (YLL.V): Silver in Mexico

Producers

ECU Silver Mining (ECU.V): Silver, lead, zinc in Mexico
Endeavour Silver (EDR.TO): Silver in Mexico
Excellon Resources (EXN.V): Silver in Mexico
Fortuna Silver Mines (FVI.V): Silver in Mexico
Great Panther Resources (GPR.TO): Silver in Mexico
Hochschild Mining (HOC.L): Silver in Argentina, Chile, Mexico, Peru
Impact Silver (IPT.V): Silver in Mexico, Dominican Republic
Minera Andes (MAI.TO): Silver in Argentina
Milner Consolidated Silver Mines (MCA.V): Silver in Canada
Pan American Silver (PAA.TO): Silver in Bolivia, Mexico, Peru
Silver Wheaton (SLW): Silver in Greece, Mexico, Peru, Sweden
Silver Standard (SSRI): Silver in Argentina, Mexico, Chile, Peru, Canada, the United States and Australia
Silverstone Resources (SST.V): Silver in Mexico
Silvercorp (SVM.TO): Silver in China

Can the Iranian Oil Bourse become the catalyst for a significant blow to the position of worldwide power the US Dollar enjoys? Manifold supply fears have driven the price of crude oil nearwards its recent highs of $67.10 which are also only a notch below historical records in real dollar terms. With the world facing a daily bill of roughly $5.5 billion for crude oil at current price levels it becomes apparent that sellers and purchasers of the black gold are looking into all ways that could lead to a financial improvement on their respective side.
While the worldwide bottleneck of inadequate refining facilities and partly dramatic declines in production – for example in the North Sea – are two factors that cannot be eliminated in the short term there is one area left which could result in smiling faces of oil producers and (most) buyers likewise. Non US dollar thinkers are the victim of a transaction cost in the oil trade. The necessary conversion of local currencies into greenbacks can be considered a hidden tax, charged and enjoyed by the banking sector.
Until now oil is solely priced, traded and paid for in the greenback on both markets in London and New York. The Treasury Inflow Capital data from mid-2005 show that OPEC members have parked only a skimpy $120 billion in direct dollar holdings which are almost equally split between equities and debt paper. This is a clear indication that oil producers are investing their windfalls elsewhere. The yield spread between US and EU debt papers in favor of the EU is clearly another hint where the petrodollars might flow after conversion.
The Iranian Oil Bourse (IOB) will become a factor that could unsettle the dollar’s dominant position.
Especially in the case of Iran it does not make sense to accept dollars only for its much desired commodity. Being seen as a hostile country by the USA for the intention to build its own nuclear reactors one wonders whether the new IOB will not try to attract other buyers than Americans who are particularly unwelcome in that corner of the globe. Iran has recently announced that the new oil exchange will start up its computers in early 2006.
The IOB can count on two sharp arrows in their holster. It can – and probably will – lure European buyers with oil prices quoted in Euros, saving them transaction costs. And it can strike barter deals with oil-hungry giants like China and India who have a lot of products and commodities to offer. I doubt that hamburgers and legal services will be considered adequate collateral for the world’s most aftersought resource.
A Renunciation Of The $ Is Worse Than An Iranian Nuclear Attack
Steering away from the almighty commodity, currency and commodity currency – the US dollar – can have a deeper impact on the US economy than a direct nuclear attack by Iran. The permanent demand for dollar denominated paper stems to a good part from the fact that until now almost all resources of the world are quoted in it.
While this has led to the Eurodollar market in the 1970’s new terms of trade could ring in the demise of the dollar as the premier reserve currency. With the world economy depending so much on oil, the black gold itself can be seen as a reserve currency that will be handed out only against the best collateral in the future. The Fed San Franciscos’s recent paper about the progress of the diversification of international central bank’s reserves shows that the dollar position is on the decline in many countries. NOTE: China has officially declared to diversify a part of its forex holdings into oil here.
Iran holds a strong hand as the #2 producer of crude behind Saudi Arabia. Politicians there will also keep in mind that dollar deposits might become a burden in the future when the US will step up its current war of words to the level of economic sanctions in the crusade against nuclear power plants. Money in the bank does not help when you have no access to it.
An abdication from the current status quo has only one real enemy: the USA, where less than five percent of the global population consume roughly one third of global production. Oil in Euros would benefit several million people more in the EU and its trading partners though.
And it would loosen the grip the USA has on OPEC members. Thinking of the rapid growth of hostilities between the USA and Arab nations in recent years a renunciation of the dollar appears to be more than just a wish in Arabic dreams.
As this development poses a very real and big danger to the superior status of the greenback and the interests of the USA the “president of war” can be expected to steer a close reach against the winds blowing from the Middle East. One may be reminded that the Iraqi despot Saddam Hussein had entered into discreet talks with the EU, proposing to sell his oil for Euros. That was in the year before the first oil war of this century.
In my conclusion the IOB this way could help the Euro to become the interim primary reserve currency before China and India will rise to the first two slots in the global economic ranking in the next few decades, an issue discussed in the post “What will be the next big reserve currency.”
A decline of the dollar’s position in oil trading might also open the floodgates in other commodity markets where the dollar is the medium of exchange but where the USA has only a minority market share. A global economy driven by tough efficiency demands in the light of thin profit margins almost everywhere is a good primer for accounting changes in other commodity markets. This process could begin in resources like steel and energy and spread to all other resources that are marketed globally. The world outside the USA has a lot to gain and nothing to lose from it.