The following portfolio updates have been implemented for AuAg Silver Bullet. 

**Discovery Silvers' new target weight is 2% (1%).**
- Good silver exposure
- Better liquidity in the stock. Now on TSX instead of TSX.V

**Hudbay Minerals' new target weight is 3% (2%)**
- Good exposure towards both silver and copper
- Increased TW before Pan Americans acquisition of Yamana  

**Yamana Golds' new target weight is 2% (4%)**
- Gradual reduction to prepare for the acquisition by Pan American (8%)

[All holdings in the fund are presented here.](/investment-solutions/auag-silver-bullet?tab=holdings#chart-holdings)


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**Portfolio updates from fund launch to January 2023 is not published in this format.**

Portfolio updates from the fund managers for AuAg Silver Bullet.

Portfolio update - AuAg Silver Bullet

Presented below are portfolio updates that took place in addition to ongoing trading on daily in/outflows in the fund. 

Portfolio updates include additions/deletions of holdings or changes of target weight. 


AuAg Silver Bullet

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Portfolio Update January 2023

During the month of January 2023, a minor change will be implemented regarding the fund's equity strategy in order to have an equal weighting between its four sub-strategies: production of environmentally friendly energy; reduced energy consumption, reduced emissions, and recycling; energy storage; and extraction of elements needed in green technology.

This means, at holdings level, that Lynas Rare Earths (Extraction of elements needed in green technology) will be phased out and EnerSys (Energy Storage/Green Power) will be phased in during the month. As before, all 20 companies in the four sub-strategies will continue to have a 3% target weight.

[All holdings in the fund are presented here.](/investment-solutions/auag-precious-green?tab=holdings#chart-holdings)

Lynas Rare Earth is still included as a portfolio holding in [AuAg Essential Metals](/investment-solutions/auag-essential-metals).

Portfolio updates from the fund managers for AuAg Precious Green.

Portfolio update - AuAg Precious Green

AuAg Precious Green

Silver's important role in solar power

Silver is a malleable, white and lustrous precious metal which has the highest electrical and thermal conductivity of all metals. Consequently, its thermal and electrical conductivity properties make it an essential industrial metal. One of the most important industrial uses for silver, alongside electronics, is in photovoltaic (PV) cells, which are the building blocks of solar panels. Silver pastes are a critical part of PV cell manufacturing, where they form a conductive layer on both the front and rear sides of silicon solar cells.to decarbonise their energy sources, while further clarifying the potential pathway for the industry to a net-zero carbon future.

Silver important in solar power

Investing in gold and silver in 2023

- [Gold](https://www.auagfunds.com/research-centre/resources/investing-in-gold) and [silver](https://www.auagfunds.com/research-centre/resources/investing-in-silver) are ending 2022 with a powerful finish and are looking strong for 2023
- We anticipate a new all-time high for gold during 2023 and the start of a new secular bull market when the price goes over 2100 USD per troy ounce
- After a series of fines, we finally see an end to the commercials’ negative and manipulative action on the COMEX-exchange
- Central banks as a group have continued, since the great financial crisis, to add more and more gold to their reserves, with a new record set for q3 2022
- It is our opinion that central banks will pivot on their rate hikes and become dovish during 2023, which will ignite an explosive move for gold for years to come
- We, therefore, believe gold will end 2023 at least 20 per cent higher, and we also see miners outperforming gold with a factor of two


Investing in mining companies in 2023

- Gold miners’ one-period historical suffering from the creation of Gold ETCs has run its cause, and the long-lasting selling period is over, resulting in no further selling pressure
- Gold miners are today historically cheap relative to gold, something that will revert and overshoot in the coming secular gold bull market
- Gold miners have lowered their debt substantially in the last ten years, as other sectors instead have taken on a lot more debt
- The gold price has also risen approximately 50% in the last four years 
- Since 2021, companies in the commodity sector have become true cash flow monsters, and the sub-sector with the highest margins has been the producers of precious metals
- Gold miners have become much more shareowner friendly and are nowadays very careful with new expensive projects
- Gold miners have a very strong dividend trend, now at 2-5% levels
- The M&A activity is high, even with companies outbidding competitors
- We see record share buybacks by gold miners in the last two years, and it is not done with added debt on high valuations as in most sectors
- Gold miners have a very low correlation with the broad stock market and are becoming more attractive for larger investors looking for possible/alternative return drivers, and that may result in substantial capital flows, which will then take equity prices higher
- Gold miners are also historically cheap vs S&P500, which offers a great entry point
- Smaller large caps, as well as larger midcaps, are expected to outperform the mega-caps within the sector
- Institutional money will significantly drive the share prices of ESG-friendly companies and ETFs with the best sustainability credentials

Remember that investing in mutual funds always involves a risk. An investment can both increase and decrease in value and it is not certain that you will recover the full amount invested. Further information can be obtained from your financial advisor. AuAg Funds only publishes product- and market-related information and does not make any investment recommendations.

Disclaimer

An outlook for gold, silver, and mining companies in 2023

Reasons to invest in gold and mining 2023

A brief summary of the most important trends and themes for gold, silver, and mining companies in 2023.

Publications

AuAg Silver Bullet

AuAg Precious Green

Silver important in solar power

Reasons to invest in gold and mining in 2023