Silver

[Enivid]

Any silver bugs here? I'd like to hear some good reason to invest in silver at the current price levels. Actually, I am very pessimistic about precious metals, but what I see is that silver resists very well against bears, so maybe it's a good time to buy some XAG, isn't it?

 

[xSPACECOWBOYx]

Hi Enivid

I trade in most commodities from time to time,( more in oil than silver) but i would never out rule the fact that silver and gold are having one of their best Bull rallies due to the weak dollar and the investors are turning to buy Physical silver (which is more or less real currency). With silver trading between $30-$40 short term who knows, but long term i think you will be on to a winner (1-5 years). A few friends of mine tend to look at the smaller mining companies but it also requires a hell of a lot of research.
I wouldn't take the doom and gloom outlook for precious metals but like i said more of a long term trade .
Read this article by Rusty McDougal,i found it quite interesting
http://www.silver-investor.com/misc_articles/SilverHitsWall.htm

All the best Envid lets us know how you get on, or keep the silver thread going

 

[Enivid]

Very, very nice article! I should definitely recommend it to anyone planning to invest in silver.

As for myself, I am currently shorting silver since early May (@ $33.64), unfortunately the price stays almost the same for more than 3 months now. Though, to my dismay, it seems to be more bullish than bearish. That's why am asking opinions. I am wondering whether I should close it now and enter a long position...

 

[Enivid]

The interesting thing about this article is that Rusty McDougal wrote it in 2001 with $5/ounce price of silver and predicted a bullish trend (in 5-15 years) to $30-$50/ounce. Quite a nice prediction.

Unfortunately, his next article (dated January 2005) is full of emotions and doesn't even come close to the usefulness of the first one.

This report is also a recommended read for everyone who's trying to figure the current silver fundamentals out:

World Silver Survey 2011 Summary

 

[imran omran]

i think silver and gold dont move at same pace in any direction. so may be when gold slows down silver catchup? did i just created a new idea of trading "KETCHUP TRADING", sounds yummy.

 

[Enivid]

Sounds interesting but, unfortunately, a brief look at the Gold and Silver charts doesn't confirm this assumption.

 

[xSPACECOWBOYx]

Hi Enivid

Sorry i should have stated when this article was published (2001) and i agree its handy to have if you want to start getting involved with silver. I tend to keep many items like this on most commodities because of the fundamentals which of course is the key issues when trading in metals,oil,corn ect…
As for your position and disregarding you s/l, the only thing that would bother me is Margin Hikes. I know they done this a while back.If your account can take it then maybe another margin hike in the near future will bring in the short selling again.
I must say though when i do trade in silver( not physical) I tend to take the same approach as i do in the forex market and day trade, anyway i'm rambling.
p.s i would like to hear other peoples ideas on trading silver..
Just a thought to get a storm brewing, if China or India remoneytize(if thats a word) silver back into their currency then i guess silver would go sky high