"Peak Silver" Is About To Rock Markets And Bring Huge Profits To Smart Buyers

Here's How You Can Profit on Scarce, Expensive Silver

So here's one of the best ways you can play the inevitability of peak silver, coupled with rising demand.

The Global X Silver Miners ETF (NYSE Arca: SIL) is my preferred "peak silver" proxy.

The ETF has over $400 million in assets spread globally across 27 silver mining companies. Of those we do find both Tahoe Resources and Hecla Mining, both of which could see their silver output challenged until outstanding issues are resolved. But together, they only represent about 8% of the allocation, so I'm not overly concerned about their impact.

Geographical allocation is nicely balanced. It works out to 39.07% in Canada, 17.72% in Mexico, 12.89% in Russia, 12.52% in United States, 11.61% in South Korea, and 6.19% in Peru.

It's true that silver producers will find they have a challenging environment in which to grow their output as grades continue to deteriorate. However, this is the mining sector: I expect many will end up doing deals to take over smaller players in the exploration and/or development stages in order to grow production.

The bottom line: Silver is in a massive bull market, and important production challenges will only add to the metal's irresistible attractiveness and price gains in 2018.

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