Loading ...PSLV versus SLV
I am looking for opinions to which vehicle would be a better play. I have decided I want to play the paper silver market in my stock account. I am carefully watching gold/silver and it appears to be on the cusp of a downward breakout.
BY REQUEST
Fully I would greatly appreciate if you could insert a long term gold/silver chart. TIA
Thank you Fully but I was after the gold to silver ratio chart…TIA
https://macrotrends.net/1441/gold-to-silver-ratio
Watch this..
.https://www.youtube.com/watch?v=kiWLzbAq5FU
and see if you agree with me that it is time to play paper silver for a trade.
Do not play silver with leverage IMO. It is literally gambling. Your thesis may ultimately be right, but when you are leveraged you could easily get shaken out, and silver makes that 10x worse due to how volatile it is.
Gold is so much more predictable and smooth. Why not just trade gold futures? You can get insane leverage and you won’t be pulling your hair out waiting for silver to move and then worrying about when to take profits when it inevitably makes a ridiculous parabolic move that typically will correct at least 50% after topping–yeah that’s loads of fun, especially when leveraged. Not.
And whether we like it or not, silver is no longer officially a monetary metal. The fact that silver bulls crow about supply shortfalls–that is precisely why is is not better money than gold. The reason gold is the best money is because there is huge above ground stock–no one is ever going to corner the gold market. This is the “stock-to-flow” concept–yearly mine output vs above ground stock.
gold has the best stock to flow ratio of any commodity by a huge factor. You know which commodity has the second highest stocks to flow ratio? Silver. But it is a distant second.
Moral of the story is, if the basis of your investment thesis is monetary, gold is speculative, but silver is far far more speculative and may not respond as a monetary metal. Im just throwing that out there. By the way, after the GFC, FOFOA was posting about how silver may not respond at all if the dollar disintegrates and gold will be the only asset that benefits in real terms.
Nevermind. I thought PSLV was a levered ETF. lol.
ETFs are dangerous IMO. Why even bother with the risk?
If I had to trade silver, I would man-up and play futures like the bigboys.
Thanks for the input Nautilus, I am though, trading in my IRA account which does not allow futures contracts, only stocks and bonds, but it does not tax me until the gamblin’ done …LOL
In that case, PSLV is likely a better choice, especially if the premium is low.