I HAVE BEEN TRYING TO UNDERSTAND WHY SMALL CAP gold /silver [PRECIOUS METALS] and copper, zinc , etc [BASE METALS] share prices are not reflecting the high prices that these commodities are commanding in the Markets today.
Based on one main source news letter and augmented by others I have composed the following conclusions.
Good reading if you wish to go to sleep, but is my humble attempt of rationalizing the Markets-which I, in my opinion, are SELDOM rational.
I truly believe the following remarks are relevant to SLT and NAG and other metal stocks that I have invested in and, hopefully, believe that the MARKETS will eventually react in a positive way to the promising developments of my picks. Do your own DD.

Make no mistake, investing in the current volatile markets is not for the faint of heart.
The major stock markets continue their wild gyrations. The torrent of bad news about
the outlook for the economy in the media has scared many investors out of the markets.
The base metals, which are being completely shunned by most investors In spite of the high metal prices, many precious metals equities have barely moved. That inertia in the equities may be due to fear of equities in general, or to a belief that the high prices are only temporary,
or to a combination of those and other factors.
Whatever the reason for the disconnect, over time the equities will align with the
commodities. Those who share the view that the precious metal price will continue
to trend higher, as they have for more than six years, have an opportunity to buy high quality companies at prices that fall far short of the value implied by today?s bullion prices.
It is becoming more evident, every day, that reality is that the U.S. is no longer the
center of the economic universe. Metals are a global commodity, with values driven by on-going economic strength in nearly every part of the world.
Even as talk intensifies of a U.S, recession, copper, gold and silver continues moving toward its all time record high. That difference between perception and reality presents an outstanding investment opportunity.
?Our research has shown that analysts? short term metal price forecasts since the
beginning of 2005 have been significantly adrift of where prices have actually settled, invariably on the pessimistic side, which leads to undervaluation of mining and metals equities?. http://www.ey.com/Global/assets.nsf/UK/ EYeSight_on_Consolidation:/$file/
Institutions are now beginning to look at commodities. ?Many pension funds are in
the very early stages of getting approval and investing in commodity markets,?
according to a Reuters article by Pratima
Desai.? http://www.reuters.com/article/manag...
pageNumber=3&virtualBrandChannel...
Demand continues to grow at a faster pace than supply and that situation is
expected to prevail for many years into the future.
. At this time, mining, exploration and development companies are being valued on the basis of those absurdly low estimates. To the extent that prices continue at levels above those long
term averages, there is enormous profit potential. That potential will begin to be realized over the coming months as a growing number of analysts adopt a more global perspective.

The gold sector seems a comfortable middle ground for investors who want to get involved in resource stocks at this time but who still remain uncertain about the world economic outlook. The gold price remains near record territory as investors around the world continue to increase their holdings of bullion (and of the various proxies for billion such as exchange traded funds or ETFs).
The other precious metals also continue to look very positive. Silver is over $17 an ounce and platinum has soared to more than $2,100 an ounce. Such big gains often lead to corrections, but the whole precious metals sector is supported by strong long term fundamentals.
In spite of the high metal prices, many precious metals equities have barely moved. That inertia in the equities may be due to fears of equities in genera, to a belief that the high prices are only temporary, or to a combination of those and other factors. Whatever the reason for the disconnect over time the equities will align with the commodities. Those who share the view
that the precious metal price will continue to trend higher, as they have for more than six years, have an opportunity to buy high quality companies at prices that fall far short of the value implied by today?s bullion prices.
At this time, mining, exploration and development companies are being valued on the basis of those absurdly low estimates. To the extent that prices continue at levels above those long
term averages, there is enormous profit potential. That potential will begin to be realized over the coming months as a growing number of analysts adopt a more global perspective.