Sunday, December 5, 2010

Silver ETF SIL from Global X funds

Here is a snapshot of a daily 6 month chart of the Global X Silver Miners ETF SIL.  The fund started in April, 2010 and for that last 6 month period, it is up 87% while the Silver ETF is up 67%.

You can go to the Global X website and see all of the fund details. The Silver Miners that the fund holds as of Dec is listed below.

If Silver continues to outperform Gold and stays in the upward trend higher, the Silver miners and this ETF should do well going forward. The financial markets will also determine how the miners will perform as they are just like any other stock and are subject to market whims and declines. (Sometimes the decline in mining stocks are even worse than your typical S&P500 company, just look at them during the financial crises in 2008/2009).

One thing that I like about this ETF is that it spreads the risk out.  If one of these miners were to publish some news that is not taken well by investors, it can get hammered quite hard and for weeks, months and possibly a year or more. The price of the fund will not take a major hit because of diversification of senior, junior and exploration miners.

Disclosure: Own shares long

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