Gold and Silver Investing Made Easy
I'm like a walking ETF. I own about 70 individual equities in the metals mining and exploration space, with the vast majority of that focused upon gold and silver. They are not all equal weighted, by any means, with individual holdings ranging from 15% down to 1% of my total. When I was acquiring these positions primarily in 2005-2006, this was the approach that I considered most appropriate for my investment objectives.
If I had it to do over again, however, with today's tools at my disposal, I may have been able to produce a roughly similar portfolio of precious metal plays using just a small handful of holdings. Newcomer Fools approaching the mining space today have the luxury of using the newer equity ETFs to gain the same sort of highly dispersed (though thoughtfully weighted) access to the industry.
The article linked here attempts to lay out a formula for precious metals investment that essentially mimics my own approach ... only in a much more efficient manner than I was able to achieve when I built my positions. For the record, the relative weighting among the four vehicles listed (in order of appearance in the article) that would most closely resemble the structure of my own portfolio, would be 30%, 30%, 25%, and 15%, respectively.
Just like with SLW and Great Panther, once again the relative latecomers seem to gain an advantage.
Please let me know what you think of the article, and the basic formula outlined with the above-indicated relative weightings. And, as always, thank you in advance for reccing the article at the source if you find the content of value.
Please note: the formula proposed in the article is merely a rough approximation of my own hldings in the sector. It would not, for example, capture my outsized position in Great Panther or select other major bets on some of the micro-cap names in particular. But for a 4-component approximation of my approach, it's still a mighty attractive option in this Fool's view.