Good point. Silver should also go up because gold has become ridiculously expensive.
You seem to look into mining companies. What makes minimg companies better that a direct investment in silver?
You seem to look into mining companies. What makes minimg companies better that a direct investment in silver?
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@NichtRelevant Great question. Mining stocks are not “better” than silver itself, they’re just a different bet. When you buy physical silver/ETC, you’re mostly exposed to the metal price and storage/fee risk.
With miners you add:
- Operational and political risk (cost overruns, accidents, local regulations, management quality).
- Balance sheet risk (debt, dilution, hedging).
- But also operating leverage: if the silver price goes up and costs stay relatively fixed, margins and cash flow can grow much faster than the metal price.
So miners can outperform silver in a bull market, but they can also underperform badly in drawdowns. I like them as a complement to a core position in physical/ETCs, not as a full substitute.
With miners you add:
- Operational and political risk (cost overruns, accidents, local regulations, management quality).
- Balance sheet risk (debt, dilution, hedging).
- But also operating leverage: if the silver price goes up and costs stay relatively fixed, margins and cash flow can grow much faster than the metal price.
So miners can outperform silver in a bull market, but they can also underperform badly in drawdowns. I like them as a complement to a core position in physical/ETCs, not as a full substitute.
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