Doubled my SLV holdings this morning. Wrote OTM covered calls on all of it. As soon as price squeaks a little lower, I'll turn the whole thing into a collar with protective puts.
Hi-ho SILVER...Away!!!!!
- Thread starter peilthetraveler
- Start date
Quote from Debaser82:
Top to lowest point in the gold correction of 08 was what, 30% in USD, even significantly less so in foreign currencies?
That's barrely bear market territory.
Tell that to all the people who were levered up to their ass in gold ETFs and spot.
Are their better investments out there? No. But this is a Trading site and as Traders we look to get the best possible price on an instrument and get out at the best possible price, right?
If you want to discuss owning bullion in your bomb shelter in your back yard, that's another subject entirely and I would point you over to Kitco for such nonsense.
i keep getting stopped out of these fucking silver stocks
Perhaps you should find out when the industrial revolution acutally happened, so you dont make yourself look silly. Last I checked the industrial age started in the late 1700s, not the 1900s. Also note that the space age started in the late 1950s. We still used silver coins in that time.
Sure we move money around faster now with the information age, but that doesnt change the fundamentals of money which is something that can be exchanged for something of equvalent value. No amount of time or technology will EVER change that. You can fool people for a short amount of time with fiat money, but not forever. Obama wants to do away with the nickel in nickels! There is talk of them turning them to aluminum now because nickel is too expensive.
http://online.wsj.com/article/SB10001424052748704370704575228210868139690.html?KEYWORDS=coins
What happens after that? When aluminum prices catch up to nickels and the metal is worth more than the aluminum? Plastic? Then when plastic is worth more than the coin? You are right...we will never get to that place because inflation will cause us to stop using coins. But dont worry...paper will also cost more. Right now it costs about 5 or 6 cents to print a 1 dollar bill(which is hiliarious if you think about it because they pay for that paper with the paper they print!) If the economy was good and we just stay the same way we have been, then in 35-40 years, it will cost more money to print a dollar than what the dollar is worth. But the economy is not fine. People are waking up. Fiat currency does not last forever. Its good for a quick jump start of an economy when you are on gold & silver, but it cant be maintained. Fiat currencies make people lazy in the end and you cant grow with a bunch of lazy people all over your country.
Maybe you should let us know when they changed this site from elitetrader.com to elitedaytrader.com or eliteswingtrader.com.
Whats the difference between a trade that lasts 10 seconds and one that lasts 10 years? Its still a trade.
Aside from Ivanovich said, which has merit.
A) Industrial use of silver has actually went down over the decades, mainly due to digital photography. Gold's has actually went up due to computing.
B) Heavy shorting of the silver futures by JP.Morgan and Gang.
C) The physical premium on silver over spot is at least 4 times the one on gold. So when you go in the bullion market to get silver & gold, silver is priced higher than on the paper market, relative to gold.
Obviously you are not aware, but some people actually trade bullion for a number of reasons. One is that you can hold an investment stake in bullion rather than soon to be worthless paper while trading around it. Another is that there are more inefficiencies to exploit. I would also add that it is simply more interesting due to the different bullion bars & coins which have more character & history than paper contracts.
I was trading bullion actively as the financial crisis started and I know that several other ET members were/are as well. I've slowed down significantly this year for a few reasons, but I am wondering now whether I should start getting active with it again. So just because we highly prefer physical over paper does not mean that all we do is sit in the bomb shelter counting our stash.