The Yajnik Letter

Your path to understanding and profiting in today’s market

New Investment Idea

Posted by admin on April 23rd, 2010

As you may have saw in my twitter feed, I took on a new position today in SIL (Global X Silver Miners ETF). It’s a newly created ETF (exchange traded fund) dedicated to silver mining companies. It’s the first pure play on a basket of large, liquid silver mining companies. It has 25 stocks in all with Canada and Mexico each making up a larger percentage of the fund that US silver companies. Specifically, it tracks the Solactive Global Silver Miners Index, comprised of the largest and most liquid silver mining companies in the world. The majority of holdings are Canadian based companies but also include companies based in the US, Mexico, Peru, and Russia. It can obviously be very volatile but if you think that silver will trade higher in years to come and possibly bridge the historic gold to silver ratio of 16, then this will have significant upside.

The top 10 holdings are: Pan American Silver (12%), Industrias Penolas (12%), Silver Wheaton Corp (12%), Fresnillo Plc (12%), Hecla Mining (4.75%), Silvercorp Metal (4.75%), Silver Standard Resources (4.75%), Coeur D’Alene Mines Corp (4.75%), Gammon Corp (4.75%), and Polymetal GDR (4.75%).

You can read more about it here with additional links to the left of the page: http://www.globalxfunds.com/FundSummary.aspx?FundId=116

Let me know what you think.

One Response to “New Investment Idea”

  1. cheap singulair Says:

    I really like your blog and i respect your work. I’ll be a frequent visitor.

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