Q: I own the above two stocks and they are up quite a bit. They are taking a small hit lately due to new year index rebalancinng. I am a little concerned about SVM since the mine is in China and China has talked about restricting silver exports. What are your top three silver stocks at the moment and what do you think about the China risk for SVM.
5i Research Answer:
SVM sells all of its production in China and should not be impacted by export restrictions. Silver has been exceptionally volatile lately but we would consider it worth keeping and we do like the sector. Other than it (which is a higher risk call), we would look to: PAAS, AG, DSV. USA looks fine and its volatility looks to be more like price consolidation after its giant gains.