Anybody speculating with silver mining shares?

[bluemoon]

What do you think? I'm a believer in the "gold in your hand or you don't own it." philosophy. That doesn't preclude us from speculating. Someone told me that mining stocks do well when PMs rise (usually better). Has anyone taken out a stake in any gold or silver mining companies?

[Tn21]

Yh I am currently thinking of doing the same thing, however finding out which companies to buy shares in and also allocating the funds are my immediate issues. 

 

[Mcgrimes]

I’ve heard mining companies can be very volatile. Don’t forget that if the price falls maybe 10%, that might make a mine unprofitable and close up 

[EdNug]

Yes! About a week ago I sorted out a trading account on a site called Degiro and purchased a few shares in half a dozen PM Streaming/Royalty companies - these carry a little bit of a lower risk than miners because streaming/royalty companies invest in mining projects for a share of the spoils but don't (directly) carry the liabilities or overheads that mining companies do and their investments are spread between different mining companies.  For guidance I used advice from King World News with a little bit of confirmational independent research - Auryn Resources are highly touted for 10-20 times increase in share price over the next few years, but if their mines are more productive than estimated and the price of PMs rises like we all think it will then those shares could be, wait for it... a veritable gold mine!  Metalla Royalty, Coeur Mining, Endeavour Silver, K92 Mining and Excellon Resources are also highly regarded and relatively cheap to invest in.  There are plenty of other good looking investments in this field but, from what i can gather, the percentage profits are to be made in 'junior miners' as opposed to the safer but way more expensive already established mining giants... Do your own research though - I'm certainly no expert.

For a contrarian investment bundle raw bullion, Bitcoin and PM streaming/royalty shares make for a pretty good base, and I'm happy to say that I now have my foot in the door of all three.

[bluemoon]

Two of the big miners are Newmont Goldcore and Barrick. I don't know if them being big means it's bad because less upside or good because more stability. I'll look into the ones you mentioned @EdNug. I'm researching how to buy shares in mining companies (never bought shares before), and I found a platform called Hargreaves Lansdown which has those miners on their platform. It would be nice if I could just go to my own bank like Barclays and buy shares via them, but I don't think it works that way.

[Tn21]

@EdNug did you buy the physical shares or are you trading on the margin via cfds ?

[EdNug]

2 hours ago, Tn21 said:

@EdNug did you buy the physical shares or are you trading on the margin via cfds ?

Bought the shares for sitting on. What does 'trading on the margin via cfds' mean? 

[Tn21]

Well with CFD's you don't physically own the shares however you can leverage your position. For example instead of buying the 100 shares outright, you buy the 100 shares via a Contract For Difference but you lay down a 10% margin roughly. 

 

I too am looking for a bunch of stocks to sit on for the long term once my £ is up. To begin with im going to start of with GDXJ and GDX allocate a small amount there first before going into the separate miners and royalty companies.