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Thursday, September 6, 2012

Streaming Profits To Your Bank Account With Gold And Silver

Precious metals have had an absolutely amazing month. The SPDR Gold Trust ETF (GLD) was up 4.9% last month, while the iShares Silver Trust (SLV) was up 13.5%. While the fast money has been made in the metals and mining stocks, I believe there are still profits to be made in the gold and silver companies near term and without question in the long term. I pounded the table in August on the gold miners and the silver miners as I repeatedly encouraged investments in the Market Vectors Gold Miners ETF (GDX), the Market Vectors Junior Gold Miners ETF (GDXJ) and the Global X Silver Miners ETF (SIL). I further highlighted some of the major individual mining companies such as Barrick Gold (ABX), Goldcorp (GG), Silvercorp Metals (SVM) and Pan American Silver (PAAS). Through my research on these prior recommendations, I became familiar with a unique business model in the gold and silver space known as 'streaming.' A precious metal streaming company generates its profits by providing upfront financing for mining companies looking to expand and drill for precious metals. In exchange for the upfront financing of these companies, the streaming company acquires the right to purchase a portion of production generated from the mines at a fixed cost. I would like to highlight two companies involved in silver and gold streaming that I am closely watching over the next 12 months that I believe could outperform traditional miners. These companies are.....READ FULL ARTICLE

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