IPFS
The Safest Way to Make Over 1,000% in Silver
Written by Sierra Hancock Subject: Gold and SilverBrian's note: We're closing out our holiday silver series with one of the highest-risk, highest-reward ways to profit on the silver bull market.
"Silver is now more attractive than it has been in decades," my colleague Porter Stansberry wrote to his subscribers.
"Assuming gold hits my target of $2,000 an ounce and assuming the price of gold is 16 times the price of silver," Porter continued, "then silver should be worth about $125 by the time the bull market in silver reaches its peak."
If Porter is even half right, then a recently launched silver investment could be the safest way to make over 1,000% in silver.
You see, before this year, we didn't have a simple way to buy a basket of silver companies. But now we do...
The Global X Silver Miners Fund (SIL).
This exchange traded fund owns a basket of the world's purest plays
on silver mining – 30 stocks in all, with decent geographic
diversification. (Silver companies from Canada and Mexico each make up a
larger percentage of the fund than U.S. silver companies.)
If you think gold mining companies are speculative – you ain't seen
nuthin'. Silver mining companies are extremely volatile. To see what I
mean, take a look at the performance of the underlying index of the
Global X Silver Miners Fund, versus the price of silver.
In 2008, when the price of silver fell in half, shares of silver mining companies lost 80% of their value.
Since bottoming in 2008, silver mining companies are up FOURFOLD, as you can see in the chart. Silver is up about 250%.
Shares of silver companies are significantly more volatile than the
price of silver. If Porter is right about the price of silver rising
500%, silver mining companies could easily soar over 1,000%.
Right now, you have four basic ways to profit if the price of silver goes up...
You can buy bags of silver coins from a dealer... but to build a serious position, you'd end up with a garage full of silver.
You can buy shares of the iShares Silver Trust (SLV), which tracks
the price of silver. (For leverage to the silver price, you could buy
double-long and double-short silver funds from ProShares.)
You can buy shares of a handful of silver companies.
For maximum upside, with more diversification than owning just a
couple silver stocks, you can buy the Global X Silver Miners Fund, which
holds shares of 25 silver companies. It's a volatile basket. But if
silver rises like Porter thinks, you could make 1,000%-plus here.
As Porter told his readers, "However you decide to own it, make sure you buy some silver now."
Good investing,
Further Reading:
Here at DailyWealth, we believe silver has
the potential to rise hundreds of percent over the coming years. And we
believe investors who stay current on what's happening in the silver
market have an enormous advantage over average investors who don't give
the asset a second thought.
So each day this week, we've published a great silver idea. We hope
you find them useful... and that you'll use them to make substantial
gains over the coming years.
