Seeking Alpha

Silver mining ETFs sink amid lame Fresnillo results

  • It's worse for the sliver miners than the gold miners today after Fresnillo (FNLPF.PK -5.6%) reported a 61% decline in H1 profit and investors decide 2.6x book value and a 26.4 PE ratio is too expensive with silver (SLV -0.9%) slipping below $20 per ounce.
  • Fresnillo makes up 12% of the Global X Silver Miners ETF (SIL -6.3%) and 5.5% of the iShares MSCI Global Silver Miners ETF (SLVP -3.1%), but isn't a top-weighted stock in the PureFunds ISE Junior Silver ETF (SILJ -6.5%).
Comments (2)
  • thrash
    , contributor
    Comments (120) | Send Message
    - The longer the silver price languishes , the less miners will be producing , leading to shortages. And the longer the price is suppressed the greater will be the rebound.
    6 Aug 2013, 03:59 PM Reply Like
  • Brian Bobbitt
    , contributor
    Comments (1905) | Send Message
    I agree thrash, I also believe that the forces I have been talking about have not abated. If the economy is growing, then industrial use must be increasing, and that is the biggest draw-down for silver supplies. It took me over three months to get a silver deliver of American Eagles from a trusted supplier who seemed to be not to worried if I got my eagles or not. I was totally amazed. The mints also are not pumping out silver eagles and have a back log and are not taking orders, as they can't get rounds. WHY?
    Anyway, I am simply pecking away at metals, not selling any except for some numismatics when the deal suits me. I say buy and notice, how the price of silver is not making new lows.
    Wait and see. But, in the mean time buy some at these prices.
    Capt. Brian
    The Lost Navigator
    6 Aug 2013, 06:31 PM Reply Like
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