The poor Dow! It sits about exactly where it sat six years ago. Gold and silver, of course, are way up, even at today’s low prices. I wouldn’t own stocks if my long dead grandma came back to life and told me to buy some. This includes mine shares too. I have had a lot of calls of late telling me how they have lost heavily on mine shares. Of course there are those who, over the long time, have done very well too, but I’ll bet no better than with physical. I often liken the numismatic dealers to used car salesmen, because they lie through their teeth about how the government will never confiscate their rare coins, telling the gullible that Roosevelt at one time did confiscate gold. A pack of lies of course, as no gold has EVER BEEN CONFISCATED. As I think I have mentioned before, when I owned the Grand Imperial Hotel in Silverton, which is a famous mining town, the promoters would come in, rent a suite of rooms, and start the sales pitch to the unwary. One of the most notable were the “Buffalo Boy and “Buffalo Girl.” She had left her husband and was a previous TV star. I don’t know about him, hut they blew into Town and rented room 216. They had just bought the “Buffalo Boy” mine, which had long ago been exhausted of ore. The tram line was sort of still intact, and the lower tram house was a dwelling. At any rate, the affair soon blew over, and they’re both probably dead now, as this was 35 years ago. It was typical. We used to say that the only mining that was done was to the investors. The same probably holds true with mine stocks today.
I quote from a book by my friend Dennis Smith, one of the great writers and authorities on Colorado and Colorado Mine history. In his book on Henry Teller, Colorado’s first US Senator and a grand pioneer, he tells about Teller’s legal talent. Teller was a great lawyer and found himself constantly defending mine operations against slick stock promoters and unwary investors. From page 45 of his book on one of the more famous mines near Central City, the “Little Pittsburgh,”: “The few facts that came out for the public to ponder did not present a pretty picture. During February, the directors had been busy selling their stock. In May, Chaffee said, “I venture to suggest that in history of mining few companies have ever been able to make a better showing for their first year’s operations, or have better prospects for the future.” The words rang hollow. The stock hit $5 as he pontificated and by the end of 1880 sank to a dismal $2 on a “quiet” market. The stock of the “Little Pittsburgh” had been over $30, and some said would reach $50 a share. Those in the know had been unloading at the peak. This is a common thing for all directors and insiders of all corporations to do, and it has been going on for hundreds of years! When a share is of a mine or corporation located thousands of miles away in some sand patch on the other side of the earth, isn’t it logical that those “in the know” will milk the thing dry or siphon the profits, leaving the innocent but ignorant shareholders holding the bag? I saw it happen over and over again in Silverton, and as a matter of fact it is happening right now with one particular mine. I know the miners who are working the mine, and they say it is a total waste of money, but they’re getting paid, so why should they care? I saw Ed J. yesterday in Silverton, and he just chuckled when I asked him about the good ore he was mining. You do as you see fit, but count me out as far as owning shares of anything.