Global X Silver Miners (SIL) — This ETF invests at least 80% of its assets in securities of the Solactive Global Silver Miners Total Return Index and in ADRs based on the securities in the underlying index.
Top holdings in SIL include Industrias Penoles SAB de CV, Silver Wheaton Corp. (SLW), MAG Silver Corp (MAG), Silver Standard Resources Inc. (SSRI), Polymetal International (POYYF), Fresnillo Plc (FNLPF), Primero Mining Corp (PPP), Tahoe Resources Inc (TAHO), Pan American Silver Corp. (PAAS) and McEwen Mining Inc (MUX).
Like gold mining stocks and Market Vectors Gold Miners ETF (GDX) — which was recently featured as the Trade of the Day — silver miners have been out of favor since 2011, when SIL made its all-time high at over $31 per share. Also like gold miners, recent technical action indicates that silver miners are under accumulation. While SIL is down 42% in the past year, shares are up 4.5% from their mid-September low.
For the first time in years, my proprietary internal indicator, the Collins-Bollinger Reversal (CBR), issued a buy signal for SIL. The signal was triggered on Sept. 11 at what could be the bottom of a deep “V,” which is a very bullish formation.
Admittedly, this is a high-risk situation, but a modest investment could result in a large percentage gain.
Buy SIL under $6.35 for a two-month trade to $7.35 for a potential gain of more than 15%. Long-term holders may see the ETF jump above $8 and even resolve into a bull market. A stop-loss order should be entered under the recent low of $6.04. SIL also currently has a 30-day SEC yield of 1.8%.