I have been long on silver, rode up with the highs with AGQ, sold right a few months ago when the bubble burst and bought ZSL to make money on the way down. Then got back in AGQ up until a couple of days ago when it was taking a beating. Friday afternoon while on family vacation, did a little day trade and bought ZSL not because of a longterm feel but just to take advantage of a small correction.
Boy and I in a pickle. There is no question that the dollar will fall and fall hard. The Asian markets will have silver and gold up on Sunday night and AGQ will see gains of about 20-30% on monday. For the people that say interest rates will keep silver down due to industrial demand, interest rates are not effected YET. What is affected is the dollar, and silver and gold will be seen as a safe haven.
Congrats to silver longs if you where able to hold it through the crazyness this past week. You will be rewarded on Monday. I will watch closely and get back in AGQ at the right time to ride it with you.
I never ever never trade when on vacation...anymore. I have lost money or left much on the table when I've done it. I also know too many stories of people who have done the same and experienced bad results. When you trade while on vacation you don't have the feel nor the ability to guage the market like you do when you're not on vacation. It's hard enough to make money when you know what's going on.
Why do you believe the dollar will go down?
While it is weaker than it was a few years ago, it is still viewed as stronger than nearly every other currency. People still have to use the dollar to buy and sell American trades.
Before you get all emotional and hyped up by television, think about the rest of the world. Very few countries are doing well now.
I now believe that the dollar has a greater chance of declining because of some nations and people and hedge funds selling there USA Treasuries, when they bought the Treasuries they had to convert there currency into the U.S.Dollar before they could buy them, That caused a demand for the dollar, But now the reverse can happen, when they sell the treasuries they then will convert the U.S.Dollars they receive back into the there own currency thus selling the dollar. This is why the dollar will decline.
Investors and countries are going to leave the Dollar IMHO. Not completelty mind you. China can't stop investing in US Govt bonds beacuse it will make the 1 Trillion they already have worth less. But what china is doing is loading up on gold and silver and by the end of this year, would have over taken India as the biggest investor in gold.
Moves like this (safe haven) is why I liked silver and gold so much. I just wish I wasn't on vacation this week so I could have been in a better position. If you currently own AGQ you will see a big spike up in your portfolio on Monday. I do hold physical gold (thank goodness) but I sold my silver etf last week and got in the ZSL just for a day trade. I hope I am wrong and it comes down a on monday, but everything inside me says the S&P downgrade means the metal market will be Up Up Up!!
I try to follow the counsel of Jim Willie of the Hat Trick News Letter. I am hold FAZ because I think the market is doomed, I am also holding AGQ, What concerns me this moment is this: Why is Silver not rising on the now on the 24/7 hour sites where you can buy or sell ? namely bullion direct. It is still being offered for basically the same price as it was on Friday before the downgrade ? Any thoughts, is this so on the other purchase sites ?