Thinking about buying Silver

[kv968]

Originally Posted by KTP

I took the route of buying a few mining companies instead of the actual metal.

I bought FCX at $35 and TC at $6.40. Both have low PE and run at a profit and are near 52 week lows. FCX even pays a dividend but TC is opening a new gold mine in the Klondike. TC makes most of its money in molybdium (probably spelled that wrong, but you don't have to be a spelling whiz to invest )

It is kind of fun owning a gold mine, heh heh.

Actually FCX and TC aren't really true gold mining companies. FCX is about 13% gold mining and 78% copper and TC is mostly molybdeum (spelled right but try saying it )so they're really an industrial metal play. They've both had great YTD returns but that's due most likely to their heavily weighted industrial metal compostion and the fact that China seems to be easing a bit. However, a good return is a good return.

Their YTD returns haven't come close to FCX and TC, but if you want to own pure GOLD mining companies you should be looking more at NEM, ABX, AUY, etc... Or as 97guns said, more of the junior mining companies if you're willing to take the volatility. Although I'm sure you know, also realize that the returns from the mining companies don't correlate well to the spot price of gold a lot of times.

[smith121]

Originally Posted by LMA

Why is that?

Yes good link and extremely useful info. Thanks a lot.!!

[aditi]

i was thinking about to take position in silver but there is no surity of market so i thought it really works

[vips]

Now a days all commodities prices are increasing so many people are investing these to get more returns. Gold is hot stock in market, then silver also rated on top level in stock market so I don't think there might be a maximum risk to buy silver.

[KTP]

For all of you silver bugs out there, here is a suggestion:

Helca Mining (symbol HL)


Market Cap (intraday)5: 1.52B
Enterprise Value (Feb 25, 2012)3: 1.29B
Trailing P/E (ttm, intraday): 10.65
Forward P/E (fye Dec 31, 2013)1: 9.53

They are mainly a silver miner, with gold, lead and zinc also. They have mines in Alaska and Idaho. 265 million net cash, about 17% of market cap. Pays a small dividend.

Depends if you think silver is going up or down I guess...

[97guns]

physical silver is the way to go and it is a hedge against everything. higher food/oil prices and rampant inflation, silver protects.

[aditi]

hii

this is an right time to invest money in gold/silver because marketing is getting bullish and most of the traders making profit after investing in MCX.


Thanks to discuss this thread