So I'm really not concerned if silver sells of. I don't own silver directly. I don't trade it as a commodity either. I just own shares in $SILVER MINES LTD(SVL.AU)$ . They are a silver mining company based in Australia predominantly with the rights to arguably the largest silver mine deposits in Australia. They have proven out their reserves. But only expect to secure government approval to start mining as early as mid 2026.
In an earlier article I wrote incorrectly that the licensing was in place, but it's not yet. Realistically I don't think they will start mining til 2027/2028. But they also have mining businesses in California and a few other spots that mite start production sooner.
This does not concern me though, it wasn't my play. Just as land developers bank land, that they mite just hold for 10 years before they develop. Well SVL is the same idea for me. I don't expect dividends from this company any time soon, maybe in 5 years? I do expect dilution when they need a ton of money to start mining though. And there is a possibility of a buy out.
But my play is based on the usefulness of silver as a conductor in electronic components. And it's also based on a lot of research indicating that silver is and will continue to lagg global demand. That is, it's not being pulled out of the ground fast enough to meet demand now, and in the longer term.
So I'm just buying silver mines to bakevin the long term future price of silver. Keep it in the ground, not bothered. It's a future asset not realizable any time soon. Obviously it's less than 1% of my total portfolio.
Therefore I have no interest if it sells off big time in the next few months. That's not even a remote consideration For me. Same if it goes up. It's meaningless.
I brought Australian silver mines because it's not producing silver. It just has the right to mine a massive worldwide quantity of silver some time in the future. So i chose this company over every other silver mining company cause to me it's a silver bank.
Just looked in my portfolio and SVL is actually 0.3% of my portfolio. Tiny, but in 10 years it will be interesting so my plan will be to just keep dropping a few bucks on it whenever I'm not compelled to buy something else
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
