MinKL Invest

Thursday, 28 April 2011

Silver ETFs US50

Thanks to inflationary pressures and booming emerging markets, a number of key commodities have seen their values soar so far in 2011. While this trend has been especially pronounced in the energy and food commodity markets, precious metals have also been a huge beneficiary of the movement as many traders and investors have piled into these assets as safe havens. While gold has performed admirably during this time period, silver has been the real star, with prices surging from under $30/oz. at the start of the year to well over $40/oz. in a matter of months.

Thanks to these gains, and the continued worry over fiat currencies as well as the ever increasing demand for the metal both in industrial uses and by those in emerging markets, some believe that silver still has quite a bit of room to run. In fact, several analysts are calling for the metal to break through the $50/oz. mark and possibly continue higher. “Silver has certainly gone up a lot in the last 9-10 months. There is no question about that, but remember, silver is still 10% below where it was 31 years ago,” said legendary commodity investor Jim Rodgers in a recent interview. “I bet you do not know many things that are 10% below where they were 31 years ago.” That perspective suggests at least one commodity guru doesn’t think the run is over just yet [see all the precious metal ETFs here].

ETFs have become a popular way for playing all types of commodities, and investors have particularly embraced the low costs, tax efficiency, and intraday liquidity offered as a means of achieving exposure to precious metals. There are dozens of different options for gaining exposure to silver, including direct physically-backed exposure, a futures-based strategy, and investment in silver intensive companies. Below, we profile three of these options that approach an investment in the white metal from different angles:

iShares Silver Trust (SLV)

SLV is by far the most popular physically-backed silver fund and is one of the most popular ETFs in the world as well with AUM exceeding $16 billion and average daily trading volume in excess of 34 million shares. The fund is designed to track the spot price ofsilver bullion by holding it in secure vaults and publishing the list of bars on the company website; in total the firm holds more than 11,000 tonnes of the metal. In terms of performance, SLV has been on a tear; this ETF is up close to 115% over the past year and has gained nearly 50% since the beginning of 2011.

Another option for physically-backed silver exposure is the ETF Securities Physical Silver Shares (SIVR). The approach taken by this fund is nearly identical to SLV, as both ETFs invest directly in silver bullion stored in secure vaults. The biggest differentiator for SIVR is the expense ratio; this fund charges just 0.30%, compared to 0.50% for SLV [see How ETFs Have Democratized Investing].

Global X Silver Miners ETF (SIL)

For investors seeking an equity play on silver instead of a physically-backed approach, SIL makes for a compelling choice. The fund targets the Solactive Global Silver Miners Index, which is designed to reflect the performance of the silver mining industry. It is comprised of common stocks, ADRs and GDRs of selected companies globally that are actively engaged in some aspect of the industry such as silver mining, refining or exploration. Currently, it consists of 25 securities in total with the heaviest weights going towards companies based in Canada and the U.S. In terms of individual holdings, four companies combine to make up about 45% of the total assets; Silver Wheaton Corp., Fresnillo Plc, Industrias Penoles SAB de CV, and Pan American Silver Corp.

SIL has, much like the underlying metal, performed very well over the past quarter, gaining close to 30%. Because the profitability of mining companies depends on the market price for their goods, these stocks can often trade as leveraged plays on spot metal prices. Moreover, some may be more comfortable evaluating companies that produce cash flows and pay out dividends instead of just investing in a bar of metal; for those, SIL could make for an interesting way to play silver [see Precious Metal ETFs: Physical Vs. Equity Exposure].

iShares MSCI All Peru Capped Index Fund (EPU)

Although Mexico recently eclipsed Peru as the world’s top producer of silver, the relatively small size of Peru in comparison to its northern neighbor ensures that silver has a much greater impact on Peruvian markets. In fact, close to four ounces of silver are produced per person in Peru every year, compared to just over one ounce per person in Mexico. Nonetheless, Peru still produces roughly 16% of total silver supplies in the world, ensuring that although it may have lost the title for world’s biggest silver producer it is still a vital nation for the metal. Thanks to this dependence on commodities and silver in particular, Peru can be thought of as an indirect play on silver prices–albeit it in a high risk emerging market vehicle. Many Peruvian companies are directly engaged in the extraction of the white metal, creating a link between commodity and equity markets. But higher silver prices also translate into increased exports and wealth for Peru, which can trickle through other sectors of the economy as well.

EPU tracks the MSCI All Peru Capped Index which measures the performance of the Peruvian equity market. Currently, the fund has 29% securities in total with a large chunk going towards small and micro cap companies. In terms of sectors, the fund more than 60% of its total assets in material firms, including close to 16% in Compania ia De Minas Buenaventura, one of the largest precious metal miners in the region. This suggests that while EPU isn’t be any means a pure play on silver, it could make for an interesting choice nonetheless and might have more direct exposure to silver than you may initially think [Emerging Market ETFs: Seven Factors To Consider].

[For more ETF ideas, sign up for our free ETF newsletter.]

All information on this website is for educational purposes only and is not intended to provide financial advise. Any statements about profits or income, expressed or implied, does not represent a guarantee. Your actual trading may result in losses as no trading system is guaranteed. You accept full responsibilities for your actions, trades, profit or loss, and agree to hold MinKL Invest harmless in any and all ways.

US risks war with China and Russia - World War III - Pt 1/2 - 04-25-2011.

GOTO YOUTUBE FOR MORE....

While revolts in Tunisia and Egypt caught the US by surprise there is speculation that they are behind revolts in Libya and Syria. Russia and China are also see observing these developments.

Press TV talks with Dr. Paul Craig Roberts, former assistant secretary to US Treasury in Panama City who concisely provides insight as to the larger scope of American hegemonic strategy that seriously risks Russian and Chinese interests.

Press TV: There is talk about Washington being advised to arm the revolutionaries in Libya. Do you think this is a good idea?

Dr. Paul Craig Roberts: They are already arming them. That is what's unique about the Libyan revolt. It's not a peaceful revolt; it's not taking place in the capital; it's an armed revolt from the eastern part of the country. And we know that the CIA is involved on the ground and so they are already armed.

Press TV: How do you compare this military intervention to the one in Bahrain?

Dr. Paul Craig Roberts: We don't want to overthrow the government in Bahrain or in Saudi Arabia where both governments are using violence against protesters because they're our puppets and we have a large naval base in Bahrain.

We want to overthrow Gaddafi and Assad in Syria because we want to clear China and Russia out of the Mediterranean. China has massive energy investments in eastern Libya and is relying on Libya along with Angola and Nigeria for energy needs. This is an American effort to deny resources to China just as Washington and London denied resources to the Japanese in the 1930s.

The interest in the Syria protests, which Wikileaks shows the Americans are behind -- we are interested in that because the Russians have a large naval base in Syria and it gives them a presence in the Mediterranean. So you see that Washington is all for invading against Libya and is putting more and more pressure to intervene in Syria because we want to get rid of the Russians and the Chinese.

We don't have anything to say about the Saudis -- how they treat protesters or anything to say about the violence used against protesters in Bahrain.

Press TV: Are you saying the ultimate goal in attacking Libya is because of the oil factor?

Dr. Paul Craig Roberts: It's not just the oil, it's the fact of China's penetration of Africa and China lining up oil supplies for its energy needs. You may be aware that the International Monetary Fund (IMF) has released a report that says that the 'Age of America' is over and that the American economy will be bypassed by China in five years and then the US will become the second largest economy rather than first. So one of the things Washington is trying to do is to block; to use its superior military and strategic capabilities at this time to block China's acquisition of resources in order to make the development of the Chinese economy slow down.

This is a major reason why the CIA has been active in eastern Libya and it's the reason protests broke out in the east not in the capital like in the other Arab countries and it's the reasons it's armed.

Press TV: Do you think Libya's diplomatic isolation was the main reason for this military intervention?

Dr. Paul Craig Roberts: I don't think it was the main reason. The main reason I think was to evict China from Libya, which is what is happening. The Chinese had 30,000 people there and they've had to evacuate 29,000 of them.

It's also payback to Gaddafi for refusing to join the US Africa Command (AfriComm). It became operative in 2008 and was the American response to China's penetration of Africa; we created a military response to that and Gaddafi refused to participate -- he said it was an act of imperialism trying to purchase an entire continent.

And I think the third reason is that Gaddafi in Libya controls an important part of the Mediterranean coast; as does Syria.

So I think those two countries are just in the way of American hegemony in the Mediterranean and certainly the Americans don't want a powerful Russian fleet stationed there and they certainly don't want China drawing energy resources.

Washington was caught off guard by the outbreaks of protests in Tunisia and Egypt, but quickly learned that they could use and hide behind Arab protests to evict Russia and China without a direct confrontation, they wouldn't want that, so they've engineered these protests.

We know for a fact that the CIA has been stirring discord in eastern Libya for some time, this is a known fact. And the release of Wikileaks cables show that the Americans are involved in stirring up unrest in Syria.

http://www.presstv.ir/detail/176776.html

All information on this website is for educational purposes only and is not intended to provide financial advise. Any statements about profits or income, expressed or implied, does not represent a guarantee. Your actual trading may result in losses as no trading system is guaranteed. You accept full responsibilities for your actions, trades, profit or loss, and agree to hold MinKL Invest harmless in any and all ways.

SIEGEL VS. SHILLER: Why Professor Siegel Has It Right

Stocks for the Long Run ...Book

THE DEFINITIVE GUIDE TO HIGH-RETURN, LOW-RISK EQUITIES-NOW UPDATED TO COVER GLOBAL STOCKS AND ETFS

Stocks for the Long Run set a precedent as the most complete and irrefutable case for stock market investment ever written. Now, this bible for long-term investing continues its tradition with a Fourth Edition featuring updated, revised, and new material that will keep you competitive in the global market and up-to-date on the latest index instruments.

Wharton School professor Jeremy Siegel provides a potent mix of new evidence, research, and analysis supporting his key strategies for amassing a solid portfolio with enhanced returns and reduced risk. In a seamless narrative that incorporates the historical record of the markets with the realities of today's investing environment, the Fourth Edition features:

A new chapter on globalization that documents the how the emerging world will soon overtake the developed world and how it impacts the international economy
An extended chapter on indexing that includes fundamentally-weighted indexes, which have historically offered better returns and lower volatility than their capitalization-weighted counterparts
Insightful analysis on what moves the market and how little we know about the sources of big market changes
A sobering look at behavioral finance and the psychological factors that can lead investors to make irrational investment decisions

A major highlight of this new edition of Stocks for the Long Run is the chapter on global investing. With the U.S. stock market currently holding less than half of the world's equity capitalization, it's risky for investors not to diversify abroad. This updated edition shows you how to create an “efficient portfolio” that best balances asset allocation in domestic and foreign markets and provides thorough coverage on sector allocation across the globe.

Stocks for the Long Run is essential reading for every investor and advisor who wants to fully understand the market - including its behavior, past trends, and future influences - in order to develop a prosperous long-term portfolio that is both safe and secure.