Is m2 the ultimate denomination of wealth?
A decade ago in 2004 silver was
only $6 an ounce then in 2008 $9 now in 2014 you are looking at almost double what
it was six years ago. Even the epic loss
in 2011 did not seem to tarnish SLV as an investment. I would look at these numbers and agree that
investing in silver is a sure bet. Floating
rate notes (FRNs) cannot compare to silver trading, when buying silver it’s
more of a stack and hold type of investment.
The metals market cannot keep up the lows we see, the production in
mining is well above the low numbers that we are trading at currently. Are industrial buyers just locking in a
supply? We are seeing mass rollover of
long contracts, unusual for industrial buyer’s positions. These seem to be a “deeper pocket” strategy,
possibly metal manipulation. Silver is
oversold when looking at a technical picture, last year looking at the RSI you
see silver bottoming with lows right before it hit the lows June of last year. Has the spike in SLV just begun? We saw record sales last month, with the most
volume ever seen in SLV COMEX futures, even shortages in the physical metal.
Could silver go lower? Some traders predict $15 others see the lows
just a way for the SGE to buy discounted metals and horde them until they can
control the new fix price. Who can
really predict the drop or rise with all the global entities corrupting the
market. We never thought we would see
interest rates at zero, how do we know what is to come? Well look at history, look at human and
market predictability, in no way will they just let metals go lower than we see
now. This is why trading metals is
really the way to go; yes holding the physical PMs is a great insurance for
your own personal assets. Trading metal
options is a true and complete strategy.
While the cost of silver is so low I personally would stack and hold,
however as it gets higher lets say over $49 I would switch to lead.