Sakata

Leveraging Silver with Stocks

This article should have been written last October when mining stocks bottomed out. I bought a bucketful of them at that time and have been well rewarded. Not having the time to do extensive research I just determined some minimum criteria which I could check in a few minutes for each company and the randomly selected 25 of those which passed. I later added another 25. For a total time investment of less than 5 hours I have returned over 50% since then.

This is about the same as the return on my physical silver but my point is that by selecting RANDOM stocks I was able to match the silver price, and in the process way out perform the general market. If I had had the time to investigate the stocks further I would almost certainly have had much better returns. Or if I had had the time to determine a more rigorous exit strategy I would probably have returned closer to 75% then 50% from this random collection because several of those stocks are now off their high since I bought then.

I disciplined investor, who had the time to spend several hours a week in this sector could easily have returned well over 100% in about six months. Now that I have more time I am anticipating being able to achieve at least 100% in the next six months. I keep a sizable holding in physical silver, as an insurance policy, but I am moving more and more into a combination of large mining producers and junior stocks and looking to move more into silver stocks than gold stocks.