SIL Global X Silver Miners ETF
Global Silver Miner Exposure
Silver benefits from its attractiveness as an investment asset – serving as a potential hedge against inflation and sovereign currency risk – and also from its many industrial applications. Given the fixed cost nature of the mining industry, silver miners can enjoy a rapid improvement in profitability in a rising price environment, and the reverse is true under a falling price environment. With the Global X Silver Miners ETF, investors have access to a broad range of silver mining companies that all stand to benefit from the potential of rising silver prices. Due to significant barriers to entry in the silver mining industry, existing silver miners have a first-mover advantage – in 2013, the majority of supply increases came from existing mining companies that expanded their operations to meet increased demand. In addition, holding a basket of global silver miners helps reduce single-company risk, contributes geographical diversification to a portfolio and could potentially provide additional income through dividends.
Investment Demand and Industrial Use
| * ||Total Identifiable investment demand, (physical bar investment, coins,and silver ETF inventory), rose from 188.6 M oz. (Million Oz) in 2011, to 247.2 M oz. in 2013, increasing by 14.5% per year (Silver Institute, 2014*). |
| * ||Demand & Supply Gap: The gap between the global demand for silver and its supply from mining increased from 145.7 M oz. in 2009 to 261.5M oz. in 2013. Since mining is the main source of silver supply, bridging this gap would require an increase in investment towards the exploration of new mines (Silver Institute 2014). |
| * ||Robust growth in emerging market economies (Future of Silver Industrial Demand, 2011 & Silver Institute 2014). |
Miners vs. Physical Silver Investment
| * ||Avoid Additional Costs - Investment in physical silver involves additional delivery, storage and insurance costs that may reduce returns. (All ETFs are subject to management fees and expenses. Brokerage transaction fees may apply if brokerage services are used) |
| * ||Taxation - Investments in physically-backed precious metals ETFs are taxed as collectables at ordinary income rates under U.S. tax laws. Investments in commodities futures ETFs are given a hybrid treatment where 60% of gains are taxed at long-term rates and 40% are taxed as short - profits subject to ordinary income tax rate rates. In contrast, the Global X Silver Miners ETF does not invest in physical silver or silver futures and therefore receives a tax treatment similar to equity investments. |
Welcome to the SIL board. This is an ETF that is made up of the Silver Miners.
Potential here is Awesome. Great 401k Addition, or Trade.
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