SILVER: Are you ready?
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| Topic: Silver — August 25th, 2006
Make no mistake about it, now is the time to be getting into position by investing in your favourite silver stocks in order to catch this move by silver prices to higher ground.
The volatility will continue, however the trend is upward for this precious and industrial metal. We don’t care whether you invest in the silver stocks that we have invested in or not! The choice is entirely yours, but do make a choice. Remember that doing nothing is also a decision. The money in your pocket today is falling in value as you hold it, just like the salt flowing through an egg timer.
The chart below shows the fight back by silver from its recent sell off. The bounce off the 200-day moving average is just wonderful to us, but this is just the sort of move we like to see when investing our money into any market sector.
Our silver portfolio is up on average 14% in a short time with the old slugger Pan American leading the charge with a 19.5% gain. We think this is reasonably good progress, however if you have something better tell us about it and we’ll mention it on this site for the benefit of our readership. We might even invest in it if we believe that you have got it right! Now there’s a challenge.
25 August 2006
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![[Most Recent Quotes from www.kitco.com]](http://kitconet.com/images/quotes_2a.gif)
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/charts/metals/silver/t24_ag_en_usoz_2.gif)
Silver moves back to the bottom of the upward trend channel which means that it could move down to 12, which might prove to be a good time to buy.
I must say I am surprised to see how quickly silver has dropped by one dollar in one week. Earlier this year, I’ve made the mistake of using long silver turbos to speculate on silver moving up. It proved to be a bad move to speculate with these derivatives as they they have a stoploss that can be lethal in such a bullish market.
PS: Turbos are only offered by ABN Amro and can be used to trade anything from Google to coffee and from bonds to forex, using a leverage factor. They do not expire but they do have stoplosses. German Commerzbank offers a similar derivative called speeders.
Note that market makers can withdraw from the market at any time desired, making turbos and speeders very hazardous things to play with.
Comment by Joey — September 8, 2006 @ 1:56 pm
We hate to watch silver by the minute but the last couple of days have seen a rigorous shakeout. However, in the last hour or so it does appear to found some support so your opportunity to buy next week may well have arrived.
Buying stocks and shares, the odd options trade or spread bet is about as far as we dare to venture. May be we are overly cautious in our approach but turbos and speeders sound a bit close to the edge for us. But, we are interested!
Comment by Bob — September 8, 2006 @ 3:20 pm