Focused on Silver

 

Opportunity

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About 90% of the world's annual silver supply is consumed for industrial applications (60%) and jewelry & silverware (30%), while only about 10% goes to meet investment demand, which is mostly coins. Silver is commonly viewed as an industrial metal, which is true, however, this does not negate the fact that it is still the best form of tangible money for everyday life. Silver is well positioned for the years ahead as the demand for the latter, in a world of monetary chaos, heats up.

 

Objective

The Silver Miners Portfolio invests across all types of silver miners—established producers, junior producers, developers, and explorers—with an emphasis on holding companies trading at compelling valuations based upon their ability to generate free cash flow for shareholders. The objective is free cash flow built upon a foundation of leveraged exposure to silver. 

 

Advantages

There are several advantages to investing in the Silver Miners Portfolio versus an exchange traded fund or a mutual fund. These include:

 

Flexibility

  • Client cash is invested only when compelling values are available. If the miners, as a whole, are overvalued, the portfolio is free to hold substantial amounts of cash or other short term securities and hedge exposure with inverse ETFs.
  • Company selection is not restricted to only those trading on Canadian and U.S. exchanges. The portfolio is managed using a broker with low cost access to all major international stock exchanges.  
     

Customization

  • Unlike mutual funds, each client has their own portfolio that is not effected by investment flows from other investors. Portfolios never have to liquidate undervalued companies or purchase more shares of overvalued companies due to market volatility and swings in investor sentiment.
  • Individual portfolios allow for custom harvesting of capital gains and losses. The sale of securities can be structured to ensure that clients receive the maximum tax benefits for their unique situations. 
  • Do you have a certain gold miner that you want to include in your portfolio no matter what? No problem. We can fit it in. 
     

Communication

  • Clients always have direct access to their portfolio manager. 
  • Market analysis, price forecasts, and company research published on The True Vine Letter and Seeking Alpha provide investors with a clear picture of my strategy and some of the unique, company-specific opportunities that I am following. 

 

Suitable Investors

The Silver Miners Portfolio is an ideal solution for individuals, with a total portfolio of at least $200,000, and institutions looking to gain actively managed exposure to this often overlooked, mining sub-industry. Silver miners can be very volatile so access to the portfolio for individuals is restricted to a small portion of their overall investments. This varies for each individual depending upon their financial objectives and risk tolerance. 

 

Timing

The Silver Miners Portfolio was initiated in October 2016, based upon my broader economic and market forecast, which leaves a runaway of about 2 years to prepare before inflation begins to accelerate. Natural resources are essential investments for preserving wealth during periods of high inflation. The leverage component of silver miners provides the added potential for investors to not just preserve their wealth, but grow it on an inflation-adjusted basis.

 

Management Fees

The management fee for the Silver Miners Portfolio is the same as that which I charge for managing regular client portfolios. Here is the fee schedule breakdown:

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Diversify your investments with a portfolio dedicated exclusively to silver miners.