The Safest Way to Make Over 1,000% in Silver

"Silver is now more attractive than it has been in decades," my colleague Porter Stansberry wrote to his subscribers.
 
"Assuming gold hits my target of $2,000 an ounce and assuming the price of gold is 16 times the price of silver," Porter continued, "then silver should be worth about $125 by the time the bull market in silver reaches its peak."
 
If Porter is even half right, then a recently launched silver investment could be the safest way to make over 1,000% in silver.
 
You see, before this year, we didn't have a simple way to buy a basket of silver companies. But now we do...


The Global X Silver Miners Fund (SIL).
 
This exchange traded fund owns a basket of the world's purest plays on silver mining – 30 stocks in all, with decent geographic diversification . (Silver companies from Canada and Mexico each make up a larger percentage of the fund than U.S. silver companies.)
 
If you think gold mining companies are speculative – you ain't seen nuthin'. Silver mining companies are extremely volatile. To see what I mean, take a look at the performance of the underlying index of the Global X Silver Miners Fund, versus the price of silver.
 
In 2008, when the price of silver fell in half, shares of silver mining companies lost 80% of their value.

Since bottoming in 2008, silver mining companies are up FOURFOLD, as you can see in the chart. Silver is up about 250%.

 
Shares of silver companies are significantly more volatile than the price of silver. If Porter is right about the price of silver rising 500%, silver mining companies could easily soar over 1,000%.
 
Right now, you have four basic ways to profit if the price of silver goes up...
 
You can buy bags of silver coins from a dealer... but to build a serious position, you'd end up with a garage full of silver.
 
You can buy shares of the iShares Silver Trust (SLV), which tracks the price of silver. (For leverage to the silver price, you could buy double-long and double-short silver funds from ProShares.)
 
You can buy shares of a handful of silver companies.

 
For maximum upside, with more diversification than owning just a couple silver stocks, you can buy the Global X Silver Miners Fund, which holds shares of 25 silver companies. It's a volatile basket. But if silver rises like Porter thinks, you could make 1,000%-plus here.
 
As Porter told his readers, "However you decide to own it, make sure you buy some silver now."

Source:smallstocks