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2 Silver Stocks To Buy Now! (Hedge Fund Secret) - YouTube
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youtube welcome back to investing club
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in this video i want to show you a piece
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of the stock market that i think has
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some tremendous value right now so if we
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take a look at some of the top
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performing sectors over the past few
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weeks and few months
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one of the sectors that i am pretty
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bullish on are basic materials we can
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see in the last one month performance
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basic materials has been the best
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performing sector
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as well as in the last three months and
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if we go down to even a week
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basic materials was in the top two
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performing sectors so i'm someone who
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thinks with
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the current economic environment with
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what the federal reserve has been doing
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i think basic materials like commodities
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and metals have the potential to do very
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well in the next couple of years you
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know a part of basic materials is
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precious metals and within precious
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metals i think
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i think silver stocks have the potential
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to do very well
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in the next couple of years i've made a
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video on gold stocks and how i'm bullish
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on gold and i have the same feelings
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towards silver
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i think gold and silver will both do
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very well over the next five years
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so in this video i'm going to show you
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why i think that and then i'll show you
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a couple of silver stocks that i'm
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thinking about buying so probably the
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biggest reason i'm bullish on silver is
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explained by this chart
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red line is the price of silver and the
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blue line is the capital inflows of
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silver so what this chart is telling you
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is that the demand for silver
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has shot up to a level that we haven't
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seen in a very long time
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and this started when the price of
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silver was crashing back in march
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so usually when the price of silver goes
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down the demand goes down because no one
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wants it if it's going down however this
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year has been different when the stock
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when the price of silver was going down
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the demand for it was actually shooting
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way up in this type of demand doesn't
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come from retail trader so what i think
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is happening is a lot of institutions
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and hedge funds and other types of smart
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money see the potential in silver and
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are getting into it now
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getting into it when the price was down
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in march and are still going and are
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still getting into it the inflows are
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still
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increasing week after week and so i
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think this is a very good sign for
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silver
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and obviously this isn't financial
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advice and i'm not a financial advisor
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and silver could very well go down but
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these are my thoughts on it so always do
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your own due diligence before buying
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stocks but if you're someone who doesn't
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like
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investing in individual companies this
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is something that you can invest in it's
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the silver miners etf their ticker is
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s-i-l-j and so this etf holds a basket
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of silver mining
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companies and this has the potential to
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do very well if we see the price of
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silver continue to go up
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like it has been this is currently at 13
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and i think we could easily go back to
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the levels we were at back 2013
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2014 when precious metals were doing
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very well
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and at that point this etf was at over
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20 dollars so if we saw that that could
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be some very nice upside
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from where we are right now so in terms
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of a couple silver stocks i'm looking at
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the first one
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is mag silver group ticker mag and they
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are currently building
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what is to be one of the largest silver
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mines in mexico
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all they'll have to worry about is a
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very relatively low amount of capital
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expenditures but besides that if you
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look at their balance sheet they have
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absolutely no debt
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debt equity is zero and their current
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ratio is over a hundred this company is
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absolutely
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loaded up on assets and so essentially
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once the mine is up and running
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every ounce of silver that comes out of
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these mines a lot of it's going to flow
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straight down
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to their net income and so next year
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this company is predicted to be
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profitable once their mine is up and
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running
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i think this company's been doing all
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the right things and they have a lot of
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upside
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if we see the price of silver go up once
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we see that new mine go running at its
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full
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capacity there's a potential for this
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company to start making a lot of money
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and the second silver stock i'm looking
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at is first majestic silver corp their
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tickers
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ag and i'm looking at this stock because
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of their exposure to silver while most
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silver mining stock
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also mine gold copper and other sort of
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metals
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this company is one of the largest
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concentrations in silver around 93
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percent of this company's revenues come
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from silver
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and so what that means is this company
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is leveraged towards the price of
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silvers so for every dollar that the
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price of silver goes up it's going to
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add up to be that much more money on
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this company's top line and that will
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flow down to their bottom line their net
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income
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while most silver companies revenues are
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only around 50
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from silver this company almost entirely
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makes this money from mining silver so
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if you are someone who strongly believes
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that the price of silver will go up
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this is probably the stock that has one
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of the highest amount of upsides for you
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because like i said when silver goes up
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this company will do extremely well
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because how much money they make is very
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closely tied to the price of silver and
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so i think if silver does go up it will
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really increase this company's free cash
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flow and with that they'll be able to go
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and acquire more mines
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that'll help them produce even more
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silver and other metals so i think this
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company has the potential to do very
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well not only from how much money
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they'll make but the opportunities
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they'll have to invest that money
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if the price of silver goes up so those
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are the two stocks i'm looking at and
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the etf
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let me know what your thoughts on gold
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and silver are and if you think they'll
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do well
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over the next few years so that's it for
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this video if you liked the video hit
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the thumbs up subscribe to the channel
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if you haven't already and i'll see you
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on the next video
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[Music]
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