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SILJ – A Safer Way To Play Silver At This Time

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For anyone who has ever speculated on mining stocks before in the past, you probably know full well how potent having even just a select few silver stocks handy can be for overall portfolio returns whenever sentiment flips to positive for the continue reading at Seeking Alpha

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  • JamesNo Gravatar May 1, 2019, 8:45 pm

    Great article on SILJ. You brought up the main issues about the relatively high expense ratio and it not being a pure silver play. There was one other issue I see with SILJ, which is liquidity. SILJ trades a relatively low number of shares versus other precious metal ETFs such as GDX and GDXJ. I’d be interested in knowing your thoughts about this.

    For now, I prefer buying silver (the metal) over the silver mining stocks for of the reasons you pointed out: the miners are producing it for not much more than it costs them, and the historically high gold:silver ratio. I’ve been eyeing SILJ for quite some time but not ready yet to pull the trigger.

    • FI FighterNo Gravatar May 1, 2019, 10:26 pm

      James,

      Yes, true SILJ does not have liquidity like GDX or GDXJ do. I guess it depends on your position sizing, for myself, I haven’t had troubles in the past buying/selling since I don’t own a huge tranche of SILJ.

      Another option would be SIL which I believe has a core holding position in Wheaton Precious Metals, which may be preferred since in theory royalty and streaming businesses should be better insulated to market volatility than individual mining companies.

      Agreed that physical silver is so cheap now, it by itself probably will provide a ton of leverage in the right market environment.

      Best wishes!

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