Mish Buys a Basket of Miners

By: Mike Shedlock | Fri, Jun 14, 2013
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Most of my investment funds are under management at Sitka Pacific. I also have investments with GoldMoney and some other assets from my late wife Joanne.

I believe precious metal miners represent true value, but I cannot state when the market will come to the same conclusion.

Last week I bought a basket of miners with a significant amount of money. Many of these stocks are also held in various Sitka Pacific strategies.


Mish Miner Basket

Symbol Average Price Initial Weight PE Dividend Yield
NEM $34.08 30% 10.06 $1.40 4.10%
GG $29.18 15% 15.70 $0.60 2.10%
ABX $20.64 15% NA $0.80 4.00%
GDX $29.60 10% 11.00 NA 1.20%
GLDX $16.73 5% NA NA 6.52%
HMY $4.08 5% 11.73 $0.10 2.30%
SBGL $3.38 2% NA NA NA
SLW $23.72 9% 14.22 $0.48 2.00%
PAAS $12.65 9% 42.38 $0.50 4.10%


General Comments

As you can see, most of the investment is with major mining companies that pay substantial dividends. PEs are trailing, not optimistic or unrealistic forward estimates. Price per book value is low in most cases. Each symbol is a clickable link to Yahoo!Finance statistics.


Gold Stock Comments


Silver Stock Comments

As you can see I weighted the basket 82% gold to 18% silver which reflects my belief that gold is a far safer play. None of these picks constitutes a recommendation in any way. Please do your own due diligence.

 


 

Mike Shedlock

Author: Mike Shedlock

Mike Shedlock / Mish
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Mike Shedlock

Michael "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Visit http://www.sitkapacific.com/ to learn more about wealth management for investors seeking strong performance with low volatility.

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