He started his own firm a year ago so he can invest in niche markets and specific commodities.
Currently, he is very focused on silver since developing a silver mine can be a great business. Many of them are small and high-grade so you can get excellent results with minimal capital investment. Most silver mines have secondary metals which help greatly to make a mine profitable.
He likes the fundamentals of the metal however many find that it’s a tricky sector to analyze. There is a lot of demand for silver for various industrial uses and very few alternatives.
Most silver is mined as a by-product and these larger producers are not growing. Silver has similar fundamental features to gold. If you can find a pure silver play it will likely do very well in the coming bull market. Mr. Stein discusses several companies that are primarily silver miners.
He is currently active in private equity and has found a private silver mining company in Peru. Currently, they are working on a plan to optimize the company which is currently under-capitalized.
There needs to be a catalyst to get the precious metal markets moving. On the plus side building, a long-term and methodical base will inevitably result in better upside potential.
The Global X Silver Miners ETF (SIL) was unchanged in premarket trading Thursday. Year-to-date, SIL has declined -3.83%, versus a 1.71% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of Palisade Research.