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
100 Items That Disappear First in a Disaster
23 Markevthorne
68, 69 probably not that safe - particularly if you're growing your own vegetables - keep a Maine Coon cat instead: does the job automatically.
Farage Interviews Le Pen: “Prison of the EU”
21 Marneville
BRITANNIA RULES THE WAVES AND NOW BREXIT WAIVES THE RULES. GO FOR IT FRANCE AND RID YOURSELVES FROM THE CHAINS OF IDIOTS. NOT SIN...
How the Fed Operates — And Why It's a Problem
20 Marramasart
In a nutshell, the Fed facilitates the theft of the value of the dollar, as they can control the increase in supply which at the same time inverts ...
How the Fed Operates — And Why It's a Problem
20 Marneville1
With all due respects for outlining how the crooked american Fed works or should work. From all our research we find the following the Fed...
Sparta - Gold prohibition in a collapsing economy
18 Markevthorne
You've answered none of the authors points: your comment is flat rubbish.
America Too Broke to Fix Crumbling Infrastructure? “Bridges, Roads,...
16 MarCameron Waugh1
Just like the leaders of the Bolshevik revolution were not Russians, those formulating belligerent US foreign policy are not Americans, and they ha...
POTUS at SOTUS
16 MarDRGEORGE1
Try explaining that to my patients dying on public waiting lists or getting ripped off by exorbitant private specialist fees!
POTUS at SOTUS
08 MarS W.0
I don't know what hallucinogens Dr G is on but my experience, both working in, and using the health system in Oz is that it is very bloody good.!
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS