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Sunday, 27 March 2011

How To Invest In Silver Using Silver Mining Stocks

By Kutu Sinaga


If you are like most backers you have considered making an investment in silver, but all of the promotional hype has made the method very perplexing. The most recent price run up of valuable metals has made silver investing a hot commodity for many investors. Once you make a decision to invest in silver the following call is what the simplest way to invest is. I feel it makes the most sense to take a position in silver firms that discover and produce silver. This investment can be implemented by purchasing mining stocks that may be bought thru your trade account. The reason why I find silver stocks interesting is really because their highly leverage to the cost of silver. Even after the latest spike in the cost of silver, the metal is well below its record high of $50 an oz.. This suggests silver corporations income and profits should continue increasing while expenditures stay comparatively flat.

Concentrate on corporations that are making silver as many of them are still prospecting and aren't manufacturing any silver at all and may never produce silver, which gives them a much greater risk profile. Some of my fave silver mining stocks are noted below for your research. Please go over your stock concepts with your consultant before making any purchases. Also, I own a few of these silver mining stocks and could decrease or increase my holdings at anytime.

At the very top of my list is Silver Wheaton Corp ( NYSE : SLW ). The company takes silver purchase agreements ; silver purchase agreement is just the legal right to receive a share of production from a mine. By making an investment in a silver purchase agreement, Silver Wheation gets a share of the metal produced from a specified property in return for a front end payment, without presuming any responsibility for the particular mining operation. Therefore , the Company doesn't need to contribute to the operating and capital costs at the mine. Silver Wheaton recently asserted it might start providing a tiny dividend in early 2011.

Some other silver mining stocks to test out are : Pan American Silver Company ( NDX : PAAS ), Silver Standard Resources Inc.( Naz : SSRI ), Silvercorp Metals Inc ( NYSE : SVM ), Coeur d'Alene Mines Company , ( NYSE : CDE ), Mag Silver Company .( NYSE : MVG ), Hecla Mining Company ( NYSE : HL ), Endeavour Silver Company . ( AMEX : EXK ), Alexco Resources ( AMEX : AXU ), Goldcorp ( NYSE : GG ), Gammon Gold ( TSX : GAM ) and Excellon Resources ( TSX : EXN ).

I am expecting silver mining stocks to resume rising in value, with corrections on the way, over the next 4 to six years. Selecting the correct silver mining stock to take a position in will be the toughest part of your silver investment call. Again, make efforts to talk to your investment counsellor before buying any stocks.




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