Q: Do you have a favorite silver miner? Would you go with a miner or buy physical silver.
I was considering PAAS but they seem to generate a significant portion of revenue from gold. Thanks.
I was considering PAAS but they seem to generate a significant portion of revenue from gold. Thanks.
5i Research Answer:
Miners typically have more upside in a rally; bullion tends to do well when investors are worried or inflation is higher than normal. The sector is particularly sensitive to interest rates and the US dollar. At this time, with rates set to fall and some confidence returning to capital markets, we would choose stocks over bullion. We do like PAAS and it does move with silver even with some other metals' exposure. We might want more than one stock for diversification, so would also suggest FVI and MAG.