Bought USLV @ 5.32. Was watching BB speaking and gold / silver sliding as he continued to speak. Seems like silver may have bottomed around 19.25 - .30 and gold down about $20 around $1270. Both have edged up a little in the last few minutes. USLV is an ETF that goes long silver X 3.
Just closed out the silver trade. Sold @ 5.49, had bought @ 5.32. Did OK, but what a struggle. Watching CNBC (and SLV) to see every up and down tick in silver. A drop in gold / silver about 45 minutes ago wiped out my gain, then it turned around and gave me a gain, which I grabbed.
Not sure about trading this way, very stressful, and a lot more "computer time" than I prefer to put in. I'm probably more cut out to be a day-to-day trader, than a minute-to-minute type.
Still made some $$ anyway............Kel
Still holding. USLV up a few cents from my buy point and silver is up about 3 cents. Will probably let the trade run into tomorrow and see what kind of open we get on Thursday. I treat these 2x and 3X ETFs as strictly very short term trading material. I can handle being wrong.....I just want to keep any loss to 1% or less of the invested amount with this type of trade.
I am no longer sure how precious metal will move. CNBC just interviewed Paulson in Alpha Delivery (CNBC conference). This was his first ever interview and they asked about his losses in GOLD and he said he offered his clients the choice of having either gold shares or other currencies as hedges against inflation and the gold shares only amounted to 2% of his overall holdings. He recommended buying real estates as investments for the next 4-7 years because he believe we are now at the bottom of the real estate cycle.
I do not know if any one will know for sure if both gold and silver have indeed bottomed out. Many still predicted both will tank more due to slow down of China. Usually gold to silver should be at about a 1:50 ratio, that may be why the US Mint gave the $50 denomination to a one oz. gold eagle coin and a one dollar denomination to the 1 oz. silver eagle coin. At today's gold spot of 1277.90 and silver spot of 19.37, the ratio is a whopping 65.97. That means either silver is undervalued at 19.37 and will rise to 25.56 to get closer to the 1:50 ratio or gold will continue to drop to around $ 968.5 to give the same ratio. I feel that gold will continue to drop and I do not know how silver will react. I believe it will go down too. I feel more comfortable to wait till it drops to the $15-16 range before I participate or see it starts moving upward to establish a trend. My smart friend just bought 1000 shares of SLV today. I have no idea what he tried to do.
To accurately time the market in buying USLV will be like gambling but you did have good timing in the past and therefore I wish you luck. I would rather buy more GGN if it drops because it has a high yield even if it will reduce its future dividends. J
I myself like palladium and platinum because they both will be in high demand and their shortage will continue due to continued industrial demands and labor problems in South Africa.
In one article published on June 25, 2013:
"In CPM Group’s Platinum Group Metals Yearbook 2013, the New York-based metals and mining consultants predicts the palladium market will move into an account deficit beginning next year, which will remain until at least 2024.
CPM also forecast that, although the platinum market fell into a deficit in 2012, demand should increase this year.
The anticipated account deficit in palladium next year “represents an enormous shift from persistent surplus over the past dozen years,” CPM noted. “The deficit in this market is projected to range between 59,000 to 678,000 ounces during the forecast period.”"
I had bought some PALL (a palladium CEF) at 71.72 on 7/15, it was traded at a range of 71.64-72.35 today. Its recent NAV is 71.96 (as of 7/16, changing daily). I believe it has the most potential among precious metal. I am also watching two platinum CEFs - PPLT and PTM closely and will jump in when the prices are right.
The miner EXK is worth a look(I have a postion in them). Do some research, as they had a record quarter in production amounts of gold and silver as well as gross revenue. EPS will be announced 8/6. This quarter EPS will be low and possibly a loss. But their price is beaten down and they are positioned very well if silver rises.