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PM/Miners Diversification for a SIPP


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Hi All,

 

I've recently set up a SIPP (thanks to suggestions from members on here) and thanks partly to the protected rights contributions from the Govt, I've got about £50,000 to play with. The investment aim of this SIPP is to provide part of my retirement income in 15-20 years' time. I also have another personal pension and a small executive pension, so I'm not gambling with my entire pension pot here.

 

Mrs MH and I already have a substantial position in allocated physical gold (about 60% of liquid wealth). We also own our own house outright, have land and no debt.

 

Currently, I have about 65% of the SIPP in shares and funds, the remainder in cash.

 

I am looking to ensure that I also have good exposure to precious metals and to PM miners. I have bought some LON:GBS, but I've been a bit underwhelmed with its performance, as its quoted in dollars.

 

I would be grateful for some suggestions as to what I might add to my portfolio. I'm quite happy to take on some more risky stocks if the fundamentals look promising, as I only place a certain percentage in any one stock/fund/ETF.

 

Many thanks,

 

TMH

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Assuming you're restricted to the London market, here is a list of companies which are worth a look.

 

Antofagasta (ANTO) - Copper/Gold

Centamin Egypt (CEY) - Gold

Cluff Gold (CLF) - Gold

Fresnillo (FRES) - Silver

Hochschild Mining (HOC) - Silver

Horizonte Minerals (HZM) - Gold/Nickel

Petropavlovsk (POG) - Gold/Iron Ore

Medusa Mining (MML) - Gold/Copper

Nyota Minerals (NYO) - Gold

Randgold (RRS) - Gold

 

Note: Country risk is a factor with most of these, and they're all very different.

 

FWIW there is a vastly better selection available on the Canadian market, and the stocks over there do a much better job of tracking metals prices than the London listers.

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You may like to consider the diversification offered by the ETFs NYSE:GDX for the big gold miners and NYSE:GDXJ for the juniors, GDXJ also includes silver miners I believe.

 

If you're restricted to the LSE then the equivalent of GDX is AUCO provided by ETF securities. Check out ETF securities, they also provide physically backed PM ETFs. I'm not aware of a a junior miners equivalent quoted on the LSE.

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