Silver is an interesting case because it serves as both a commodity as well as a money metal. Silver is in fact a technology metal. It's commercial use was undisputed prior to digital photography. That was a first wave for silver utility to society. We are currently near the end of a massive 2nd wave not in terms of price but in terms of utility. With all of silver's incredible properties on so many broad fronts, it is sure to have a 3rd wave up in terms of commodity use: anti microbial, super efficient windings for electric motors, battery components, etc. Silver is definitely the prince of commodity metals.
In the world of metals, the physical metal itself has enduring, long term value. It is long term savings. If you want a bit of speculation in this area (AKA "investing" and "gambling"), the miners are where all the leverage and rapid price moves come from. Check out the chart of Pan American Silver (PAAS). With 5 downward waves all but in the bag this one will not stay down forever:
Note:
- $421mn cash, $84mn debt
- P/B =0.64 (very cheap)
- P/S=1.8
- Current dividend is 4.8%. Try getting that at a bank.
Keep in mind the way percentages work: those who bought the peak @~$40 are down ~75%. Those who buy this at $8-$10 and ride it back up to just $20 are good for 100%. And if it goes up to $20, it will go past $40 IMO. Buy low, sell high.
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