Close X Cookies are necessary for the proper functioning of 24hGold.com. By continuing your navigation on our website, you are accepting the use of cookies.
To learn more about cookies ...
EnglishFrench
Gold & Silver Prices in

If You Own Silver, Do You Really Need Mining Stocks?

IMG Auteur
Published : January 25th, 2013
242 words - Reading time : less than a minute
( 0 vote, 0/5 )
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
0
comment
Our Newsletter...
Category : GoldWire

[Some thoughts about the relative merits of silver bullion and mining stocks in an investment portfolio.]

Though I still own a fair amount of gold and silver mining stocks, like many other investors, I’ve fallen out of love with them in recent years for reasons that should be obvious in the charts below.

More importantly, with the remarkable performance of silver over the last four years and again here in 2012, I’m starting to wonder whether investors need mining stocks at all.

24hGold - If You Own Silver, D...

With silver, investors have seen some remarkable gains with some equally remarkable volatility but, lately, with mining stocks, about all investors have been getting is the volatility.

It wasn’t always like this, but, as shown below using the iShares Silver Trust (SLV), Market Vectors Gold Miners ETF (GDX), and Junior Gold Miners Index (GDXJ), it’s been a dismal stretch for the mining shares and, even when they did see big gains in 2009 and 2010, they still underperformed relative to silver.

In fact, after seeing similar size losses in 2007 and 2008, from 2009 through 2012, the metal’s 180 percent gain has trounced the 40 percent increase for large cap mining stocks in the GDX ETF.

It’s even worse for the junior miners ETF since, with only three full years of data to compare, silver’s 78 percent gain over this period is far better than the 10 percent loss for GDXJ.

[To continue reading this article, please visit Seeking Alpha.\


<< Previous article
Rate : Average note :0 (0 vote)
>> Next article
Tim Iacono is the founder of Iacono Research, a subscription service providing market commentary and investment advisory services specializing in commodity based investing.
WebsiteSubscribe to his services
Comments closed
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
“That War You Ordered….”
19 Febscipionasica2
How splendid to read a clear and lucid article. I am a British citizen living in France and I confirm to you that the illogical nonsense fed to yo...
Alan Greenspan renews gold advocacy, Part 1
18 Febstinger
STFU Greenspan, shut your lie-hole already. When you had a chance to make a difference you sold us out. Nobody gives a chit about...
“That War You Ordered….”
18 Febcomptel
Very good article, except for the unneeded bad language!
Trump Fan John Paulson Cuts GLD Gold Investment as Inflation Hits 5...
15 FebChrisR13
Paulson still owns 4.3 million shares but don't forget GLD allows its biggest holders to redeem for the underlying physical gold but everyone else ...
Yet Another Wall Street 'Witch's Brew'
15 FebDRGEORGE0
I'm not an American but if I had a vote I probably would have voted for DT as the alternative was much worse. My biggest concern about DTs policies...
Left Behind
13 FebJ.1
Perhaps Secretary DeVos's primary purpose will be to dismantle the Dept. of Education. Woo Hoo! Stop wasting money on ineffective education that ...
Amazon Plans Robotic Supermarket Staffed by 3; Chinese Factory Elim...
13 FebDRGEORGE1
200 years later, the spirit of Ned Ludd lives on - except sam_site doesn't want to smash the machines - he just pretends they aren't there!
Is a Global Wide Cash Ban Coming?
10 Febsam_site
The war on cash is the the result of the 2008 massive redemptions of bank CDs as the herd panicked for the exits and cashed out. That's the real r...
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS