Your Crash Course in Silver Exploration

Some folks have an easier time than others applying that iconic Peter Lynch mantra: "Invest in what you know." After all, simply owning an iPhone -- or having a thing for wings -- may offer something of an advantage when concocting a valid investment thesis for Apple or Buffalo Wild Wings.

For investors drawn to the mining industry by this ongoing rise in metal prices, however, practical insight into the processes that underlie a typical miner's operating environment can be extremely hard to come by. For this reason, I find the following educational video presented by Endeavour Silver (NYSE: EXK  ) an invaluable resource for investors seeking to apply Lynch's wisdom to the world of precious metals mining.

Part 1 of this two-part series offers a concise explanation of how silver-rich ore veins are formed, a peek at how geologists target and explore for those veins, and a fascinating window into the assay procedures used to determine the concentrations of gold and silver contained within a resulting drill core sample.

Stay tuned for the second part of this series from Endeavour, which will feature the all-important aspect of how silver is actually mined from economic deposits. If you're not sold on silver itself as a worthwhile investment opportunity, consider this compelling case made by hedge fund manager Eric Sprott.

For those not yet familiar with Endeavour Silver, this powerful growth story has delivered one of the industry's most breathtaking stock performances of late. Incredibly, with a gain of more than 425% over the past two years, Endeavour shares have outperformed even the rocket-like trajectory of Silver Wheaton (NYSE: SLW  ) . Along with my top-10 picks Great Panther Silver (AMEX: GPL  ) and Alexco Resource (AMEX: AXU  ) , I consider Endeavour among the highest-quality vehicles available for exposure to rising silver prices.

If the never-boring silver mining industry piques your Foolish curiosity, be sure to add these stocks to your free, personalized watchlist and follow all the precious news to come.

Fool contributor Christopher Barker is the self-appointed sultan of silver, and the gentle giant of gold. He can be found blogging actively and acting Foolishly within the CAPS community under the username TMFSinchiruna. He tweets. He owns shares of Alexco Resource, Endeavour Silver, Great Panther Silver, and Silver Wheaton. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a highly reflective disclosure policy.


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Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On March 21, 2011, at 6:28 PM, AirForceFool wrote:

    For someone who has roughly 17% of his portfolio dedicated to silver this was awesome. Can't wait for the next segment. Greatly appreciate it. Fool on!

    Chris

    Long silver with positions in GPL, SLW and physical bars/coins.

  • Report this Comment On March 26, 2011, at 12:11 AM, reflector wrote:

    not long after the 2008 crash i picked up a bunch of EXK at $1 per share, and sold it a little while later at $1.70, feeling pretty smart about pocketing a 70% gain.

    not long ago,with a renewed sense of optimism about silver's future, i got back in at $8-something, feeling pretty dumb, but not as dumb as if i had done nothing and watched it keep taking off.

    every time i read another story about governments mismanaging their money and printing more monopoly money it makes me want to trade in my phoney baloney dollars for real money (gold/silver).

    i have a well balanced investing portfolio by this point, 60% silver miners, 30% gold miners, 10% copper/moly (taseko)

    no diworsification here!

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