Q: Dear Peter:
I see that SVM has just been added with a 1.5% position in 5i portfolio. This didn't get any mention in various questions on Silver by members. I see that the answers to previous questions on SVM (going back to August and beyond) didn't seem that enthusiastic.
Something must have changed. Bit surprised by the rationale in your portfolio update b/c China is not exactly in a "politically" correct environment!
In any event where would you place SVM amongst Silver stocks. (PAAS/CDE/AG/HL were your safe picks previously)
Many thanks.
I see that SVM has just been added with a 1.5% position in 5i portfolio. This didn't get any mention in various questions on Silver by members. I see that the answers to previous questions on SVM (going back to August and beyond) didn't seem that enthusiastic.
Something must have changed. Bit surprised by the rationale in your portfolio update b/c China is not exactly in a "politically" correct environment!
In any event where would you place SVM amongst Silver stocks. (PAAS/CDE/AG/HL were your safe picks previously)
Many thanks.
5i Research Answer:
In July we mentioned SVM was more of a hold, but following its results in August, we mentioned it was becoming interesting. Since then, silver has begun to rally and catch up to golds performance, resulting in a risk on trade for silver miners. We liked the results of the company, its growing analyst estimates, and despite geopolitical concerns with China, this is where its higher margins result from. It is also diversifying away from China, and so this helps to address concerns there.