Silver is still about 60 percent below its last peak. So, there is a lot of room for silver prices to climb before they get back to where they were a few years ago.
But if you really want to maximise your returns in the coming silver bull market look at silver mining shares. Their prices explode when silver prices boom.
That’s because running a mine costs the same – whether silver prices are high or low. With fixed costs and low silver prices, miners often barely break even. But when silver prices are higher, and the mining costs haven’t changed, it means bigger profits for the mining companies – and higher share prices.
For example, during the most recent silver bull market from late 2008 through 2011, silver prices rose over 400 percent. At the same time, the Solactive Global Silver Miners Index, which tracks a basket of silver mining companies, gained 595 percent – or 50 percent more.
This post was published at Business Insider
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