The business communities around the world have been using the bartering as the fairest means of trading among each other for mutual benefits and economic development. This is where precious metals came into the picture. Other than currencies, precious metals were found to be the best storage of value. Though Gold has been chosen for a limited purpose for use and is restricted to certain forms, silver capable of being a better performer in terms of conductivity has found its place in various sectors of the economy, from jewelry to industrial processes. Once used for the purpose of industrial productivity it is not intended to be recycled. This is the major difference between Gold and Silver. Ninety nine percent of the amount of gold that has been mined till date is still in a processed state or form above the ground. And Silver on the other hand is just the opposite some of it would have found its way below the ground. This only opens up opportunities for the Mining Industry. The investors find it potential enough to invest in junior mining companies for achieving sizable profits and a good and diverse exposure to the global front in the Mining Sectors. The Big cap miners depend on the small cap miners for an aggressive exploration and mining strategy. Just where the large mining companies begin to lose out on the potentials of new discoveries and findings, they turn to the high risk and high profitability junior mining sector.
The importance of Silver can be seen in the figures relating to the utilization of Silver on an annual basis of over $1 billion just for the use of the metal in the manufacturing of smart phones. And the most potential market for this product is the second largest economy -China. No wonder the manufacturing industry is on a booming scale. But there is a little story of plummeting of the Chinese PV products recently. China has reached a level of overcapacity and there have been reports of some trade issues relating to this part of the industry. The exports of Photovoltaic cells and components have decreased by 31 % in the first half of the year. Forty percent of the exports of these products are targeted towards the European Union. The exports to the United States and The European Zone have fallen to some extent. But the good news is that the exports to the African and Asian economies have seen an increase. So though there is a downfall in the exports of the Photovoltaic cells and components, the fall is quite nominal and does not affect the Mining Industry to much extent. The demand for the silvery metal is still on good pages, and is expected to see a brighter future too.
The recent World Gold Council Report has shown excellent reports of a buster market for Gold earlier this year. The highlight of the report shows the demand to be largely for the purpose of ornaments particularly coming in from the Indian market.
The scenario of the Mining Industry is on good grounds as the small cap mining companies are targeted towards coal, copper, gold, iron, nickel, silver, titanium and other materials and not only to a selected product.
Global X Junior Miners ETF [JUNR] yields as per the cumulative returns of the name sake Solactive benchmark defined by the Structures Solutions AG, and gives indirect exposure to the investments in junior mining companies. First launched under the name of Global X Venture 30 Canada ETF, the Junior miners ETF operates at an expense ratio of 0.69%. ALAMOS GOLD INC, OSISKO MINING CORPORATION, AMGOLD CORPORATION, PAN AMERICAN SILVER and B2GOLD CORP are the top five asset holders of the Fund.