Sunday, July 24, 2011

Silver miners

I recently listened to a radio show that featured David Morgan, the Silver guru.  He mentioned that he has positioned his subscribers into the mid-tier Silver producers as he thought that they had the best risk-reward going forward.  He also mentioned that his subscribers have done well investing in this particular area.

It does make sense as the senior Silver producers are 'fairly' valued by the markets and the upside compared to a company that is rapidly expanding with increased production.   Some of the small cap Silver companies may be acquired by either a mid or large cap company, but you just never know which one.

There are only a handful of true Silver miners (compared to Gold miners), so it is not hard to narrow down the mid tier companies. Here is a list of the top 20 Silver producers as per the Silver-Institute:

Here is the Global X Funds Silver miners ETF holdings:

You can check out the prospectus by going to the Global X Funds website at

I am currently long a few of the companies listed in the above index and hold shares long the index itself, ticker: SIL

Silver is currently trading around the $40.42 area and the days in the $30'ies may be numbered.  Just like $1000 Gold....  With major debt issues in europe and the US on the verge of increasing the debt ceiling, both Gold and Silver (and select miners) should have a solid run-up toward the end of the year.

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