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Today I averaged up on Silvercorp for the fourth time.

Here are my entry prices:

$6.86

$14.85

$16.41

$19.60

Every single time I have bought, I have always had a few days of really thinking about my buy. Did I buy too early? Will it go up? But every single time that doubt has been erased with the stock nudging higher.

I think it is good to have that bit of doubt every time you buy or sell a stock because if you don't have it, that means you are getting cocky.

You think that everything you touch will turn to gold. You think you know it all.

Trust me, as soon as you get this approach, you will get slaughtered by Mr. Market. You will never know it all.

I consider the stock market to be slightly educated gambling. Why should a stock go up 50% one day on no news? Was it 50% undervalued the day before? Is it 50% overvalued today?

Stock market investing is a tough business because it is just like gambling. You have to watch your back and protect your capital. You have to take advantages of opportunities you see. You have to limit the influence of hype on your decisions.

Today's Silvercorp Private Placement rapid over subscription tells me one thing: Silvercorp is finally getting on portfolio managers radar screens.

They are beginning to realize this phenomenal Silver growth stock that they, like I, feel carries little risk.

The only difference is that we have been in the stock since $6. They are getting in at $20.

But don't even think for one second that they are paying too much. Au contraire, my friend.

$20 is still super cheap. My new target for 2006 is $56.

In my opinion, the push up to $20 was done more by smart small to medium size investors. But now that we're at $20, the next stop is $56 because of the (I predict) constant hand over fist buying by both hedge fund managers and other portfolio managers!

How do I get $56? Well here is my super simple calculation using rounded number for simplicity:

-Silvercorp earns $35 million this year.

-That's about $0.80/share in earnings.

-Silver Wheaton's P/E ratio right now is 70.

If it felt a little like a ghost site the past 24 hrs it's because I was away for that time period.

Gordon did a great job covering my back and he was rewarded accordingly with Silvercorp going up over 12% today!!

The volume was much, much higher than average at over 1.6 million shares trading hands.

I hope you had bought Silvercorp sometime in the past couple months I have been touting it as my #1 (silver) pick.

This news that came out today about the mine permit was the last possible overhang that I can think of that could keep some people from buying it. 

But now, I am predicting that there will be a huge rush by fund managers and the big boys to get their hands on Silvercorp.

And I can't blame them, it is the best possible silver growth stock on the TSX!

But, too bad they didn't pick it up when I was recommending you to buy it more than $12 ago! 

I have averaged up several times now on my own holding of Silvercorp and I will continue to do so as long as Silvercorp continues to go up.

This is what we have been waiting for to remove any remaining uncertainty.

Management certainly has delivered on its commitments and on time--congratulations to Cathy  Fong, and Rui Feng.

VANCOUVER, British Columbia--(BUSINESS WIRE)--March 30, 2006--Silvercorp Metals Inc. ("Silvercorp") is very pleased to report that it has received a mining permit issued by the Department of Land and Resources of Henan Province, covering 9.945 square kilometers of the SGX area within the Ying Silver Project, where the major exploration effort by Silvercorp has been focused. The permit was issued on the terms applied for, and allows operation of a 600 tonne per day underground mine within the permit area to produce silver, lead and zinc ores. The production rate can be increased in the future through amending the existing mining permit when expanded resource estimates have been filed with the Department of Land and Resources of Henan.

As planned, the 35,000 metres of exploration and development tunneling completed during the last 18 months allows mining operations to be commenced immediately without incurring further capital expenditures. Between now and March 31, 2007, Silvercorp anticipates the production rate will gradually reach the designed 600 tonnes per day capacity, for total production during the period of 140,000 tonnes of materials, containing 70,000 tonnes of high grade ores plus 70,000 tonnes of waste rock. The anticipated grades for the 70,000 tonnes of high grade ores are 45 ounces per tonne silver, 32% lead, and 6.6% zinc. The average realized prices net of smelter charges and value added tax during the first 3 months of 2006 (based on US$3.1 million revenues already realized from exploration production during the period) are US$7.6 per ounce for silver, US$0.46 per pound for lead, and US$0.62 per pound for zinc.

While building my latestsilver.com site recently, I visited the Pan American Silver Website which has a very good overview of Silver uses, facts etc. Being a huge silver bull, this is very good information. It is a lot of reading but if you have the time, it will tell you everything you need to know about silver and why it's going much higher.

Although about one quarter of the world's annual silver supply is consumed in photography, much of this silver is recycled from within the photographic sector from used film, fluids and paper.

    * All of the silver in color film processing is kept in the developing solution - none ends up on the photo - meaning that 100 percent recycling is possible.
    * Black and white imaging is the poorest recycler of silver. X-rays consume 30 to 40 percent of the silver used in photography annually and the number of x-rays taken each year is growing rapidly.