"When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe." … Frederic Bastiat

Evil talks about tolerance only when it’s weak. When it gains the upper hand, its vanity always requires the destruction of the good and the innocent, because the example of good and innocent lives is an ongoing witness against it. So it always has been. So it always will be. And America has no special immunity to becoming an enemy of its own founding beliefs about human freedom, human dignity, the limited power of the state, and the sovereignty of God. – Archbishop Chaput

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Sunday, April 17, 2011

SIL (Silver Miners ETF) to Silver ratio

This one is very revealing as it contains silver miners. Its performance against silver since last year has been spectacular - if one can measure a poor showing in those terms (spectacularly poor).

SIL Top Ten Holdings

  1. Silver Wheaton Corporation (SLW): 12.74%
  2. Industrias Penoles SAB de CV (PE&OLES): 11.10%
  3. Fresnillo PLC (FRES): 10.44%
  4. Pan American Silver Corporation (PAAS): 9.82%
  5. First Majestic Silver Corp (AG): 6.86%
  6. Coeur D'Alene Mines Corporation (CDE): 5.64%
  7. Silvercorp Metals Inc. (SVM): 5.22%
  8. Hochschild Mining PLC (HOC): 4.45%
  9. Hecla Mining Company (HL): 4.40%
  10. Silver Standard Resources, Inc. (SSRI): 4.32%


  1. Yeah, SIL is underperforming silver bullion.
    But why?
    1) SIL is shorted by hedges who are long silver?
    2) SIL reflects increasing nationalization risks?
    3) SIL reflects increasing mining costs?
    4) other?

  2. So, what's the conclusion here? Will these stocks never see their potential?

  3. The University of Texas is taking delivery on $1 Billion in physical gold. Does Jim Sinclair have an article on this yet? (I'm on my way there to check) Are you expecting a MAJOR spike here Dan?

    Gold and Silver Top News

  4. EXK, UXG and GPL are outperforming silver.

  5. Just to complete the idea...try the silver ratio against This list of 10 silver miners.
    Since last August Silver has gone from 17.50 to 43....a great rise of about 140 %.....during that time period these stocks(mostly junior miners) rose
    1) SLW ....17.50 to 47.50 = 170%
    2) AG .....under 4 to over 26 = 550%
    3) BCEKF .... 3.50 to 12 = 240%
    4) GPL .... 0.60 to 5.00 = 700+ %
    5) MISVF...May 2010 2.00 to 7 = 250%
    6) SOHAF... 0.50 to 3.25 = 550%
    7) MNEAF ...0.75 to 3.50 = 360%
    8) SVM .... 6 to 16 = 160%
    9) SMNPF ....0.60 to 1.65 = 170%
    10) EXK...... 3 to 12 = 300%

  6. The human emotion when one sees their portfolio dropping (regular stocks) seems to be to sell your profitable stocks. I know I've worked hard at breaking this habit.
    Anyone watching the risk increase and prices slowly drop in regular stocks, plus the hedgie trade is amplifying the selling pressure.
    SLW is a strange one, down 1% this morning??

  7. will the day come when juniors will come back in flavor of the speculators????

  8. Truont;

    All of the above! Add to that share dilution to finance operations and exploration, Mining is a capital intensive business. If the company goes the non-recourse loan method, they are then forced by the bullion banks to hedge expected production as a condition of the loan, thereby guaranteeing them paper losses on the hedged short position as prices of the metals move higher. It is a tough environment.

  9. Than you Dan, for your insight,it's one of the Key stones of my investing strategy, as modest as my portfolio and experience are.I did well on miners till this spread trade intensified.Now I'm unsure how to proceed.Will, and what may cause mining stocks to recover and resume their past behavior?

  10. Silver Miner ETF targets the largest and most liquid silver mining companies in the world.


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