Above is a link to an article written November 5th, 2020 – I have the opinion that yes, Junior silver miners are set up for. In a related account we do own SILJ the Junior Silver ETF, chart below:
Long Term SILJ chart:
Silver is less than half the price it was in 2011. Gold hit a new high. Stock market is close to a new high. Bonds are at a 38 Tear bubble high. Silver is an in-demand commodity that has underperforming supplies to demand as well as a precious metal. The supply and demand relationship strongly implies that this will break upwards. It is one of top choices for the short and long term. It is very volatile so no reason to use debt or margin when trading. It can wipe you out if you use margin then go on to make new highs without you in it. The top ten companies in this portfolio are the bigger companies in the industry. The industry is so small it would be hard to create a fund without the bigger companies. Yes, there are still plenty of smaller companies to give you some bang for your money in the fund as well.
SILJ Top 10 Holdings
- Pan American Silver Corp*. 12.69%
- Hecla Mining Company 10.45%
- First Majestic Silver Corp 8.72%
- Yamana Gold Inc. 6.48%
- MAG Silver Corp. 5.34%
- Hochschild Mining plc 5.01%
- SilverCrest Metals, Inc. 4.73%
- Silvercorp Metals Inc. 4.30%
- Harmony Gold Mining ADR 3.81%
- SSR Mining Inc* 2.93%
- Total Top 10 Weighting 64.46%
Our only comment and bit of complaint is we wish they owned more than 0.8% of Sibanye (SBSW) $12.78.
I feel underinvested in this company and like it a lot.
We also own Great Panther who is in the portfolio in a small position way. We like it more than just a little. The only complaint on Great panther (GPL) is that the reserve life of the mines are not so long. On the other hand, if prices continue up, they can do more exploration. Their cash on hand is multiplying rapidly.
SILJ is a great way to play a move on silver in general. We own it, and we are looking to add more 😊.
Where Value meets Buy Signals!
Feel free to forward or recommend to others.
* An account related to LOTM holds a position in this security.
Neither LOTM nor Tom Linzmeier is a Registered Investment Advisor.
Please refer to our web site for full disclosure at www.LivingOffTheMarket.com ZTA Capital Group, Inc.
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