In today’s economic conditions there are many considerations to think about if an investment in base metals is a good choice. The Chinese option is one area where this consideration is possibly profitable. Money flows are a bit uncertain at the moment but may offer the opportunity for triple investment earnings if pundits’ views play out. There are many ways to invest in base metals, but if one chooses correctly there is solid profit to be made.
Silvercorp Metals Inc., a primary silver and lead mining company working within China and based in Canada, works to operate a very successful silver and related base metal mining facilities in the Ying Mining District of China. The company is reported to be the largest primary silver producer in China and has recently announced a $0.02 dividend.
When considering China and silver one must understand the nature of silver and its many uses as a manufacturing and basic investment tool. It can be used as a strict investment vehicle for storage or collection or in can be used as a conductive material in the manufacture of many differing products. Add to this particular equation the manufacturing capacity of China and it may be quite simple to understand how silver, combined with a major manufacturing/export base, could lead to a profitable end. In this sense it may also be added that Silvercorp Metals is mining a very pure vein of silver and lead making the final product just that more profitable for high efficiency products.
With these thoughts in mind one can easily understand why the company is debt free and selling its 1.22 million oz. of production with little effort. As the world markets go about their economic troubles it might also be noted that silver is in some sort of flux. Some may suggest manipulation while others find this issue to be going away. In either case, silver is a safe bet moving forward and an indication that Silvercorp Metals is a solid play.