Investing in Silver and Silver Mining Stocks

by Fred Fuld III

Estimated Reading Time: 5 Minutes

Silver has long been regarded as a valuable commodity for investors seeking to diversify their portfolios, particularly during times of economic uncertainty. Often dubbed “poor man’s gold,” silver serves as both an industrial metal and a safe-haven asset, providing a unique blend of utility and stability. In addition to physical silver, many investors look to silver mining stocks as a way to gain exposure to the metal’s price movements, potentially amplifying returns. This article delves into the merits of silver as an investment, and profiles three prominent silver mining companies: First Majestic Silver, MAG Silver, and Silvercorp Metals.

The Investment Appeal of Silver

Silver offers a dual-purpose investment strategy. On one hand, it plays a critical role in various industrial applications, from electronics to solar panels and medical devices, which ensures a steady demand. On the other hand, silver is often seen as a store of value, much like gold, during times of inflation, currency devaluation, or global economic instability. This unique characteristic positions silver as a hedge against both market downturns and inflationary pressures.

If you are thinking of investing in silver coins, you should check out my previous article Unveiling the Precious Metal’s Potential in Your Portfolio, which covers how to tell if your coins are real or counterfeit.

Silver mining stocks, in particular, present an attractive investment option. These stocks are typically more volatile than the price of silver itself, meaning they can offer greater upside potential when silver prices rise. However, they can also carry higher risks, as they are subject to operational challenges, geopolitical risks, and fluctuating commodity prices. For investors with a higher risk tolerance, silver mining stocks can be an exciting way to gain leveraged exposure to the metal.

First Majestic Silver (AG)

First Majestic Silver Corp (NYSE: AG) is a Canadian company primarily focused on the production of silver in Mexico. It operates three producing silver mines: the San Dimas, La Encantada, and Santa Elena mines. First Majestic is known for being one of the few pure-play silver miners, with the majority of its revenue coming from silver production, making it particularly attractive to investors who want exposure to the metal.

The company’s focus on high-grade silver assets and its operational efficiency has helped it maintain competitive production costs, which is critical in a low-price environment. Moreover, First Majestic has shown a strong commitment to expanding its production capabilities through exploration and acquisition, positioning itself for future growth if silver prices rise.

First Majestic has a market capitalization of $2.21 billion, and trades at 40 times forward earnings. Earnings per share growth next year is anticipated to be up 259%. The company pays a dividend of 0.34%.

MAG Silver (MAG)

MAG Silver Corp (NYSE AMEX: MAG) is another Canadian silver-focused miner with a strong growth profile. Its flagship asset is the Juanicipio Project in Mexico, which it operates as a joint venture with Fresnillo Plc, the world’s largest primary silver producer. The Juanicipio mine is considered one of the highest-grade silver projects globally and is expected to be a major driver of production growth for MAG Silver in the coming years.

Although MAG Silver is not yet a significant producer, the potential output from Juanicipio offers substantial upside for investors seeking exposure to an emerging silver producer. The company’s low debt levels and robust project pipeline make it a solid option for those with a longer-term view on silver’s growth potential.

The stock, with a $1.74 billion market cap, has a trailing price to earnings ratio of 28.7 and a forward P/E of 20.4. Earnings per share growth next year is anticipated to be up 16.7%. The company does not pay a dividend.

Silvercorp Metals (SVM)

Silvercorp Metals Inc (NYSE AMEX: SVM) distinguishes itself from other silver miners by being the largest silver producer in China. The company operates multiple mines in the Ying Mining District, a historically significant silver-producing region. Silvercorp’s business model is built on high-margin operations, focusing on controlling costs while maintaining consistent production levels.

One key advantage for Silvercorp is its ability to generate profits even in a low silver price environment due to the by-product credits from its lead and zinc production, which helps offset operational costs. Silvercorp also has a solid balance sheet, making it an attractive option for investors looking for a relatively lower-risk play within the silver mining sector.

The stock has a $1.09 billion market cap, has a trailing price to earnings ratio of 18.5 and a forward P/E of 13.8. Earnings per share growth this year was up 76.5%, but expected to be flat next year. The company pays a dividend of 0.95%.

The Case for Silver Mining Stocks

Silver mining stocks offer an appealing combination of growth potential and leverage to the price of silver. Unlike physical silver, which simply tracks the metal’s price, mining stocks can benefit from operational efficiencies, exploration success, and production growth.

However, they also come with additional risks, including management performance, political stability in mining regions, and fluctuating production costs. For investors who believe in the long-term outlook for silver, investing in silver mining companies can provide outsized returns, particularly if silver prices rally.

In summary, silver remains an attractive option for investors looking to hedge against economic uncertainty and benefit from the metal’s industrial demand. Companies like First Majestic Silver, MAG Silver, and Silvercorp Metals provide a range of investment profiles, from established producers to emerging players with high-growth potential. As with any investment, conducting thorough due diligence is essential, but for those with a bullish view on silver, these stocks offer a promising opportunity to participate in the metal’s future price movements.

Disclosure: Author didn’t own any of the above at the time the article was written.

Golden Streams: Top Gold Royalty Stocks to Cash In on Precious Metal Gains

by Fred Fuld III

Gold and silver royalty and streaming companies offer a unique way to invest in precious metals. Unlike traditional mining companies, royalty companies provide upfront capital to miners in exchange for a percentage of the revenue or the metal produced from a mine. Streaming companies, on the other hand, provide financing to mining operations in exchange for the right to purchase a percentage of the mine’s production at a predetermined price. These business models allow royalty and streaming companies to benefit from rising metal prices without the operational risks associated with mining, such as production costs and environmental challenges.

The price of gold has been on an upward trend due to several factors, including economic uncertainty, inflation concerns, and geopolitical tensions. Gold is often seen as a safe-haven asset during times of crisis, and with central banks around the world adopting loose monetary policies, the appeal of gold and silver as a hedge against inflation has increased. Additionally, declining real interest rates have made non-yielding assets like gold more attractive to investors. As these factors persist, the price of gold may continue to rise, benefiting companies in the royalty and streaming sectors. In this article, we’ll explore five top gold and silver royalty and streaming stocks—Osisko Gold Royalties (OR), Wheaton Precious Metals (WPM), Royal Gold (RGLD), Franco-Nevada (FNV), and Sandstorm Gold (SAND). Each of these companies has a market capitalization exceeding $1 billion and offers a dividend yield above 1%.

Osisko Gold Royalties (OR)

Osisko Gold Royalties, headquartered in Montreal, Canada, is a leading royalty company focused on precious metals. The company’s flagship asset is its 5% net smelter return royalty on the Canadian Malartic mine, one of the largest gold mines in Canada. Osisko has a diversified portfolio of over 160 royalties and streams, providing it with exposure to a wide range of precious metal projects across North and South America. The company’s strategic focus on low-cost, long-life assets has positioned it well to benefit from rising gold prices.

The stock, which has a low amount of long term debt, trades at 30 times forward earnings. With a market capitalization of over $2 billion and a dividend yield of approximately 1.5%, Osisko Gold Royalties is an attractive option for investors seeking exposure to the gold market.

Wheaton Precious Metals (WPM)

Wheaton Precious Metals, based in Vancouver, Canada, is one of the largest precious metals streaming companies in the world. The company has a diversified portfolio of streams on gold, silver, and palladium mines located in the Americas and Europe. Wheaton’s business model allows it to acquire metals at a fixed cost, providing significant upside potential in a rising price environment. The company’s high-quality assets and strong financial position have made it a leader in the streaming industry.

The company is debt free, has a price to earnings ratio of 46, and a forward P/E of 35. A market capitalization of over $20 billion and a dividend yield of around 1.2%, Wheaton Precious Metals offers a compelling investment opportunity for those looking to benefit from higher precious metal prices.

Royal Gold (RGLD)

Royal Gold, headquartered in Denver, Colorado, is a premier gold royalty and streaming company with a portfolio of over 180 properties across the globe. The company’s portfolio includes some of the most prolific gold mines in the world, including the Mount Milligan mine in Canada and the Peñasquito mine in Mexico. Royal Gold’s focus on high-quality, low-cost assets has allowed it to generate strong cash flows and consistently pay dividends to shareholders.

This company, with no long term debt, has a price to earnings ratio of 36, and a forward P/E of 22. The company’s market capitalization exceeds $8 billion, and it offers a dividend yield of approximately 1.2%. Royal Gold’s diversified portfolio and solid financials make it a top pick in the royalty and streaming space.

Franco-Nevada (FNV)

Franco-Nevada, based in Toronto, Canada, is the largest gold-focused royalty and streaming company in the world. The company has a diverse portfolio of over 400 assets, including gold, silver, and other precious metals, as well as oil and gas interests. Franco-Nevada’s business model is centered around low-risk, high-margin investments that provide long-term cash flow stability. The company’s strong balance sheet and disciplined approach to capital allocation have made it a favorite among investors.

The company is debt free and has a forward P/E of 31. With a market capitalization of over $30 billion and a dividend yield of about 1%, Franco-Nevada is a cornerstone investment for those seeking exposure to gold and silver.

Sandstorm Gold (SAND)

Sandstorm Gold, headquartered in Vancouver, Canada, is a growing gold streaming and royalty company with a portfolio of over 200 assets across the globe. The company has focused on acquiring streams and royalties on early-stage projects with significant exploration potential, providing it with exposure to future growth. Sandstorm’s management team has a strong track record of identifying and investing in high-quality assets, positioning the company for long-term success.

The stock’s trailing P/E is fairly high at 54, but the forward P/E is 34. Sporting a market capitalization of over $1 billion and a dividend yield of approximately 1%, Sandstorm Gold is an emerging player in the royalty and streaming sector.

Summary

As a group, these top gold and silver royalty and streaming stocks—Osisko Gold Royalties, Wheaton Precious Metals, Royal Gold, Franco-Nevada, and Sandstorm Gold—offer investors a unique and low-risk way to gain exposure to the rising prices of precious metals.

With market capitalizations exceeding $1 billion and dividend yields above 1%, these companies provide a combination of stability, income, and growth potential.

Their business models, which focus on acquiring royalties and streams from high-quality assets, position them well to benefit from ongoing economic uncertainty and the continued rise in gold prices. For investors looking to capitalize on the strength of the gold market, these stocks are worth serious consideration.

Disclosure: Author didn’t own any of the above at the time the article was written.

How to Invest in Gold, Silver, and Copper Bullion Without Buying Gold, Silver, and Copper Bullion

by Fred Fuld III

While gold, silver, and copper bullion can add diversification to your portfolio, there are some drawbacks to consider:

Storage Costs and Security: Physically holding these metals requires secure storage, which can be expensive,especially for larger quantities. Home insurance may not cover them, so you might need to rent a safe deposit box.There’s also the risk of theft if you store them yourself.
Liquidity: Selling physical bullion can be slower than selling stocks or ETFs. You may need to find a buyer willing to pay a fair price, especially for copper which has a smaller market.
Costs Associated with Buying and Selling: There are markups on buying bullion, and fees associated with selling it. These can eat into your profits, particularly for smaller investments.

For copper, there’s the added challenge of:

Bulkiness: Copper is a dense metal. Storing large quantities can be impractical due to the weight and space required. Investing in smaller, more manageable amounts may not be very cost-effective.
Limited Market for Reselling: Not all bullion dealers buy copper, and those that do may not offer competitive prices.

So if an investor wants to avoid the risks and volatility of mining stocks, what’s an investor to do?

Fortunately, there are commission-free ways of investing in bullion, with lots of liquidity.

The way to accomplish this is by buying precious metal Exchange Traded Funds.

The most popular one is the SPDR Gold Shares (GLD), which actually owns gold bars. The fund has $62.8 billion in assets and an expense ratio of 0.40%. It is up 12.3% year-to-date.

If you are looking for silver, there is the iShares Silver Trust (SLV). The trust has a net asset value of $12.9 billion and sports an expense ratio of 0.50%. The year-to-date return is almost double what GLD provided, generating 24.1%.

As for copper, there is no ETF that owns copper bullion directly. That bullion would take up a huge amount of space. However, there is the United States Copper Index Fund (CPER), which has an objective of tracking the price of copper using copper futures.

CPER is a very low cap ETF at $229 million, and carries a relatively high expense ratio of 1.o4%. The year-to-date return is 15.5%.

Most stock brokerage firms don’t charge a commission to invest in ETFs, making the precious metals ETFs a cost effective way to trade or invest in bullion.

So now you have a few options of getting into bullion with having to buy bars or coins directly.

Disclosure: Author has a long position in GLD.

Fake Dirty Underwear: Why You Need to Buy Some

by Fred Fuld III

Recently, I posted an article about investing in silver and silver coins. But if you buy silver, or gold, coins, where do you hide them?

One popular location is a bank’s safe deposit box. But the disadvantages are that you can’t get access to the coins at all times, and if on the very rare occasion that the safe box is broken into, the bank isn’t responsible for the loss of contents.

So suppose you want to keep them at home. Unfortunately, burglars know all the common places.

These include your top dresser drawers, drawers in your nightstands, backs of closets, cookie jars, under your mattress, in the toilet tank, and other areas that are convenient for you but also the burglars.

Some sources suggest leaving the burglars a ‘tip’ which would be a small amount of cash that’s easy to find so that the burglars find it and leave without spending too much time in your house.

One source even recommends leaving a twenty dollar bill on a little table just inside your front door, because if the bad guys don’t find any money, they may retaliate by causing destruction in your house. This is especially true for teenage intruders.

Here is a suggestion. Get any old coins that you have in your house that aren’t worth much or even not worth anything above face vale, but just appear to be old. Put them in a container with a label on it that says ‘coin collection’ and keep it in your dresser. Keep your real coin collection in a much more secure location.

Let me tell you where you never should hide any items. Never, ever store valuables at the bottom of a wastebasket. The burglars may never look there, but it is almost certain that at some point, either you or a family member or a friend will accidentally throw out the valuables with the garbage. I personally had a close call with this type of hiding place.

So what does all this have to do with dirty underwear? There is a product that burglars wouldn’t even want to get close to, where you can hide cash, jewelry, or other valuables.

The product is called the Brief Safe Hidden Contents Travel Passport Wallet. A description of what it is in simple terms would be a pair of men’s underwear with a smear of coloring on it that looks like an accident took place in them. Inside is a stealth area where valuable items can be hidden.

This product is what is known as a diversion safe, also known as a camouflaged safe or secret stash container or hidden safe. It is a product to hide valuables in everyday household items.

If dirty underwear is a bit too gross, then there are plenty of other options. The ROLOWAY Hanger Diversion Safe is a way to hide valuables under an article of clothing hanging in your closet. A burglar might possibly check the pockets of all your coats and jackets that you have hanging up, but is he, or she, really going to take every article of clothing off all the hangers?

This product has one other advantage. According to the manufacturer, it is fireproof to 4200 degrees.

You might also consider a Dasani Bottled Water Diversion Safe or a Soup Can Diversion Safe.

There are plenty of items that you can hide in these safes. Here are just some examples:

keys
watches
medicine
cash
gold coins
silver coins
precious gems
diamonds
bullets
USB drives
necklaces
earrings
rings
small documents (e.g. Social Security card)
gold nuggets

Plan ahead. Keep your valuable safe.

Happy hiding!

This page contains Amazon Affiliate links.

Should You Shine On Silver? Examining the Benefits and Investment Options

Unveiling the Precious Metal’s Potential in Your Portfolio

Silver, the lustrous metal, has captivated investors for centuries. But beyond its beauty, silver offers a unique blend of potential benefits for your portfolio. Let’s explore why you might consider adding silver to your investment mix, and then delve into the various ways to hold this precious metal.

The Allure of Silver

Diversification: Silver’s price movements tend to have a low correlation to stocks and bonds. This means it can act as a hedge, potentially offsetting losses in other parts of your portfolio during economic downturns.
Inflation Hedge: Silver, like gold, has historically held its value well against inflation. As the cost of living rises, silver’s price may follow suit, protecting your purchasing power.
Industrial Demand: Silver’s industrial applications in solar panels, electronics, and medical devices create a constant demand stream, potentially influencing its price positively.
Potential for Growth: Silver’s supply is finite, while demand is expected to rise, particularly in developing economies. This imbalance could lead to price appreciation in the long run.
Affordable Entry Point: Compared to gold, silver offers a more accessible entry point for investors starting with precious metals.

Silver Investment Options: Weighing the Pros and Cons

PHYSICAL SILVER (Bullion & Coins):
- Pros: Tangible ownership, no counterparty risk, potential for collector’s value (for certain coins).
- Cons: Storage costs, insurance considerations, potential difficulty selling quickly.
SILVER MINING STOCKS:
- Pros: Potential for higher returns due to leverage on the silver price, diversification within the precious metals sector.
- Cons: Higher risk compared to physical silver, volatility associated with the company’s performance.
SILVER ETFs (Exchange Traded Funds):
- Pros: Low storage costs, fractional shares allow for easier investment amounts, high liquidity.
- Cons: You don’t own physical silver, expense ratios can eat into returns, counterparty risk associated with the ETF issuer.
  
  The most popular silver ETF is the iShares Silver Trust (SLV), which has an objective of tracking the price of silver.

A Word about Silver Coins and Authenticity

Be careful about buying silver coins, as there are many fakes being distributed. These are not just the coins with numismatic value but also the so-called junk silver coins and even the bullion coins (silver rounds).

Fortunately, there are several ways of checking whether a coin is genuine or not. One simple way is to use a phone app called CoinTester. It measures the sound of the ping when the coin is hit with an object, like a pencil.

First, you choose the type of coin. (Note: If you are checking a silver dollar, for Keyword, just type Dollar, not Silver Dollar.) You place the coin on your fingertip, tap Check on the app, then hit the coin a few times with something that won’t damage the coin (I use the wooden part of a pencil.) If is shows a 0 or 1 out of 3, it means the coin is a fake. If it shows a 2 or a 3 out of three, the coin is real.

Just remember that all tests for coins aren’t foolproof. The best approach is to buy from a very reputable coin dealer.

Many numismatic coins are slabbed. In numismatics (the study or collection of coins), “slabbed” refers to the process of encapsulating a coin in a hard plastic holder, often called a slab. These slabs are usually sealed and graded by a professional coin grading service. The purpose of slabbing coins is to protect them from damage and to provide an objective assessment of their condition and authenticity.

When a coin is slabbed, it is typically accompanied by a label indicating its grade, which is determined based on factors such as wear, luster, strike quality, and any imperfections. This grading process helps collectors and investors assess the value of the coin and provides assurance about its authenticity and condition.

Slabbed coins are often considered more desirable for collectors and investors because they come with a trusted third-party evaluation, reducing the risk of buying counterfeit or over-graded coins.

The Final Shine

Silver offers a compelling option for investors seeking diversification, inflation protection, and potential growth. Carefully consider your investment goals and risk tolerance when choosing between physical silver, mining stocks, or ETFs. Remember, a well-rounded portfolio is key, and silver can be a bright addition to the mix.

Silver as a Hedge Against Inflation: Top Silver Stocks

by Fred Fuld III

Gold and silver have historically been considered a flight to safety, especially during times of high inflation and economic uncertainty. Silver has outpaced inflation during certain time frames.

One of the advantages of silver over gold is that the metal is less expensive, making it more affordable to smaller investors. In addition, silver has far more commercial and industrial uses than gold.

There are several ways to invest in silver. Here are the primary alternatives.

Silver Bullion

You can buy silver bars and rounds in various sizes and weights. They may be produced by the United States government or by private mints. They are easily identifiable and fairly convenient to purchase though coin shops or online gold and silver dealers. You obviously have to be concerned about storage safety do to the potential for theft.

Junk Silver

Junk silver refers to U.S. dimes, quarters, and half dollars minted in 1964 or early, which ere made with 90% silver. These coins have little to no numismatic value, making them a reasonable and simple way of accumulating silver at a reasonable price. Junk silver is available from numerous coin and bullion dealers.

Silver ETF

If you want to invest in silver directly without taking physical ownership, the best way is though a silver exchange traded fund, such as the iShares Silver Trust (SLV). This ETF can be bought and sold just like any stock, without having to worry about storage.

Silver Stocks

There are several companies that specialize in primarily mining for silver. Most of these are Canadian companies, and three of them pay dividends.

First Majestic Silver Corp. (AG), which trades on the NYSE, has a market capitalization of $2.43 billion. The stock has a high trailing price to earnings ratio of 67.7 but a forward P/E ratio of 18.6. Earnings per share for next year are expected to be up 218.8%. The stock pays a small dividend of 0.21%.

Pan American Silver (PAAS) trades on NASDAQ. It has mines in mines in Canada, Mexico, Peru, Argentina, and Bolivia. This $5.24 billion market cap stock trades at 52.6 times trailing earnings and 18.8 times forward earnings. Estimated earnings per share for next year are expected to increase by 35.96%. The company pays a decent dividend yield of 1.97%.

Silvercorp Metals (SVM) is a smaller company, with a market cap of $524.5 million. The company’s mining properties are in China and Mexico. The company has several mines in Mexico, and interests in one mine in Canada. The stock has a very favorable trailing P/E ratio of 15.5, and an a better forward P/E of 10. Just this year, earnings per share jumped by 33%. The dividend for this stock is 1.97%.

Silver Mining ETFs

A diversified way to invest in silver mining companies is through an ETF. The most popular are Global X Silver Miners ETF (SIL), ETFMG Prime Junior Silver Miners ETF (SILJ), and iShares MSCI Global Silver and Metals Miners ETF (SLVP).

Maybe one of these investments may give you a sterling portfolio.

Disclosure: Author didn’t own any of the above at the time the article was written.

8 Ways to Trade or Invest in Gold in an Inflationary Environment

by Fred Fuld III

You have seen the headlines during the last several months. You have noticed the price increases on Amazon (AMZN), in your supermarket, and even at the dollar stores (which should probably now be called the $1.25 stores). Have you considered using gold as an inflation hedge?

Inflation is here and it’s getting worse. Investors and traders that understand this are now looking for ways to profit from inflation.

Of course no one expects hyperinflation, as was seen in Zimbabwe in 2008.

In Zimbabwe, the country’s peak month of inflation is estimated at 79.6 billion percent month over month, and 89.7 sextillion percent year over year in mid-November of 2008. That’s an inflation rate in numerical terms of 89,000,000,000,000,000,000,000%.

Back then, it cost billions of dollars just to buy basic food items. Inflation was so bad that the country allowed currencies from other countries to be used in April 2009. In 2015, Zimbabwe switched to the U.S. dollar as its national currency.

In 2019, Zimbabwe reintroduced the Zimbabwe dollar, but unfortunately, hyperinflation has hit the country again, measuring 737% last year.

So what is a trader and investor to do? Here are several ways to make gold work for you.

Gold

Gold has long been considered a primary inflation hedge. Over the last 20 years, the price of gold has increased by 597%, which works out to an annualized return of 10.19%. Taking inflation into consideration, gold has gone up by 335%, or 7.622% annualized.

Many studies have shown that gold has provided superior returns during times of inflation. In addition, according to a study at the Stern School of Business at New York University, “overall gold by itself is a safe haven with respect to exhibiting lower volatility in response to shocks or negative return days.”

The big question is, if you want to invest in gold, how should you do it?

Physical Gold

Physical gold means gold that you can hold in your hot little hands. This could either be gold bullion or gold coins.

Gold Bullion

Gold bullion is sometimes referred to as gold bars, similar to the bars in Fort Knox. They can be as small as one gram or as large as 400 ounces (27.5 pounds).

The big advantage of gold bullion is privacy. Bullion bars can be kept anywhere: a home safe, a safe deposit box, or in the ground. Another advantage is that bullion is generally less expensive than gold coins, even bullion gold coins.

Gold Bullion Coins

Gold bullion coins are coins that are issued by governments with a very high gold content, but very little or no numismatic value, but are issued as legal tender. In other words, they sell for very close to the price of gold. These coins include the American Gold Eagle and the Canadian Maple Leaf.

These coins also have the benefit of privacy, but they are also issued in various denominations, making them easier to trade. For example, if you have a one ounce gold bar but you want to sell one quarter of the gold, you would be stuck. However, you do have the ability to own four American Eagle quarter-ounce gold coins, or even ten 1/10th ounce coins.

Many investors believe that the gold coins have better liquidity than bullion. However, the premium on gold coins is higher than the premium on bullion, and the smaller the denomination of the coin, the higher the premium.

Numismatic Gold Coins

Numismatic gold coins are coins which have value due to their scarcity, physical appearance, condition, and many other factors. They are collected by coin collectors.

Double Eagle — National Numismatic Collection, National Museum of American History

The big advantage is that the value of these coins can increase far more than the value of gold, and can even go up in price if the gold price stays the same or even drops. They are less liquid than bullion coins and have a much bigger spread (the price at which you pay for the coin versus what you can sell it for). The other disadvantage is that the coins have a much higher premium than bullion coins.

There is one big estate tax advantage to owning U.S. numismatic gold coins. Talk to your accountant about it. It is currently legal and above board as far as I know, but I am not an accountant or tax attorney. Consult yours.

Gold Securities

Gold ETFs

Gold ETFs are Exchange Traded Funds that have a goal of tracking the price of gold. There are many of them including SPDR Gold Shares (GLD), iShares Gold Trust (IAU), and SPDR Gold MiniShares Trust (GLDM).

There are even some leveraged gold ETFs, such as ProShares Ultra Gold (UGL), which has a goal of providing twice the daily leverage of gold prices.

Gold Mining Stocks

There are many gold mining companies to choose from. The smaller companies are referred to as junior miners (not minor miners). Some of the bigger ones include Newmont Mining (NEM), Barrick Gold (GOLD),AngloGold Ashanti (AU), and Kinross Gold (KGC).

Gold Royalty Trusts

Gold Royalty Trusts do not do any mining. What they do is provide money to mining companies in return for receiving a stream of income based on a percentage of revenues or percentage of gold production.

Some of the biggest gold trusts are Franco-Nevada (FNV), Wheaton Precious Metals (WPM), Royal Gold (RGLD), and Osisko Gold Royalties (OR).

Gold Miners ETFs

Gold Miners ETFs are Exchange Traded Funds that invest in gold mining stocks. VanEck Vectors Gold Miners ETF (GDX) is the largest of these ETFs. VanEck Junior Gold Miners ETF (GDXJ) holds the smaller (junior) mining companies. Direxion Daily Gold Miners Index Bull 2x Shares (NUGT) is a double bullish ETF.

Gold Futures

One other way to invest in gold, which is the most speculative way, is through gold futures. These are exchange-traded contracts to buy or sell a specific amount of gold in the future at a specified price. The returns can be substantial but so are the risks, as your losses can far exceed the original investment that you put up.

How Much Should You Invest in Gold

Many financial advisors recommend that you hold a small amount of gold, up to 5% to 10% of your portfolio as a hedge. Hopefully, gold will make your portfolio sparkle and shine.

Disclosure: Author is long AMZN, GLD, WPM, and OR.

Dr. Mark Skousen Exclusive Interview: the Stock Market, Bitcoin, GameStop, Gold, & Bear Markets

by Fred Fuld III

The following informative interview was provided by Dr. Mark Skousen, a financial economist, editor of the Forecasts & Strategies financial newsletter since 1980, and Presidential Fellow at Chapman University, where he recently received the “Most Favorite Professor” Award. He is also the producer of FreedomFest, “the world’s largest gathering of free minds.” He is the author of several books, including The Maxims of Wall Street, now in its 10th edition.

We cover a lot in this interview, including:

The Future of the Stock Market
Bear Markets
Bitcoin, Cryptocurrency, & Blockchain
GameStop
Young Traders
Gold Bullion vs. Gold Stocks
Silver
Inflation
Interest Rates
The Technology Sector
And much, much more

He even gives the name of a gold mining stock that he likes, which trades for less than $5 a share and pays a yield of over 3%!

The Dr. Mark Skousen Interview
Enjoy listening to the great insights and information that Dr. Skousen provides:

To stream the interview, click:

HERE

It is a long interview, so it may take a few seconds to load. You can also download the interview as an mp3 by right-clicking (or Control clicking) HERE and choosing “save as.”

Books by Dr. Mark Skousen

Please note that all of Dr. Skousen’s books can be ordered directly from SkousenBooks.com, and they will be autographed and delivered with free shipping.

The Maxims of Wall Street – New 10th Anniversary Edition

A Viennese Waltz Down Wall Street

The Making of Modern Economics

EconoPower: How a New Generation of Economists is Transforming the World

His other books can be found at SkousenBooks.com.

Forecasts and Strategies

Information about the Forecasts and Strategies Newsletter and the trading services can be found at MarkSkousen.com.

Enjoy the interview and Happy Investing!

All opinions are those of Dr. Mark Skousen, and do not represent the opinions of this site or the interviewer. Neither this site, nor the interviewer, nor the interviewee are rendering tax, legal, or investment advice in this interview.

Top Silver Stocks: 10 Reasons Why Silver Should Go Up

by Fred Fuld III

Unless you haven’t watched TV or looked at the news on the Internet, you already know about the short squeezes taking place in such stocks as GameStop (GME), AMC (AMC), Nokia (NOK), and Bed Bath & Beyond (BBBY).

If you pay any attention to the stock tweets on Twitter (TWTR), you will notice that silver got caught up in all the hype, especially the iShares Silver Trust ETF (SLV) and the Sprott Physical Silver Trust (PSLV).

If you are looking at silver and silver mining stocks as a long term investment, it is not the short squeeze that you should take into consideration. There are actually ten reasons for investors to be bullish on silver.

It is a major component of solar panels.
It is a major component of electric cars.
It is used in electrical components for all automobiles.
Because gold has become relatively expensive, demand for silver in the jewelry industry is increasing.
The U.S. Government is flooding the economy with money, making the dollar worth less and silver worth more.
Governments around the world continue to mint numismatic silver coins.
Silver is used in healthcare products.
It is used in water purification.
Interest rates are very low.
Limited supply and strong demand.

If you are looking for a mining stock, here are a few to choose from.

Stock	Symbol	Country	Market Cap	P/E ratio
First Majestic Silver Corp.	AG	Canada	4.89B
Avino Silver & Gold Mines Ltd.	ASM	Canada	162.13M
Endeavour Silver Corp.	EXK	Canada	900.73M
Fortuna Silver Mines Inc.	FSM	Peru	1.68B	75
MAG Silver Corp.	MAG	Canada	1.90B
Pan American Silver Corp.	PAAS	Canada	7.36B	253
Silvercorp Metals Inc.	SVM	Canada	1.34B	35

One of the stocks, Pan American Silver, pays a dividend yield of 0.77%. The company increased its dividend yield by 40% last year.

Just keep in mind that the market for precious metals and mining stocks can be very volatile. Hopefully, you can strike it rich with a silver stock.

Disclosure: Author owns SLV, EXK, and AG.