SLV

[David Randolph]

If I'm right on my bearish scenario, money will leave stocks around the world and will look for safe havens. Bonds will work for the short term, but I see longer term risks there.

Gold & Silver will probably be bid higher as a safe haven in times of economic uncertainty. I'm not such a bull in Gold & Silver shares because they trade at such high valuations (maybe discounting the future in the precious metal prices).

There is this ETF, the IShares Silver Trust (SLV), that accurately reflects the price of the silver futures.

The 3 year chart tells me Silver is forming an ascending triangle and is about to breakout to the upside, as the bull market continues.

Trading Plan:

Buy 6.66% of capital in SLV.

[nullzero]

I agree with you David I think the market is going to enter the bear side full force. You bullish on GLD as well?

[chinaguru]

very clever, will open position in SLV

[jorgegr]

Good thinking will buy today - I've also suggested GLD on the boards.
and speculating on INRA (momentum stock)

[Dory99]

Hi David,

   I'm not sure that I can trade ETFs in 401(k). In lieu of SLV and GLD, are there specific gold and silver stocks that you could suggest? Thanks!

[David Randolph]

Hi David,

   I'm not sure that I can trade ETFs in 401(k). In lieu of SLV and GLD, are there specific gold and silver stocks that you could suggest? Thanks!

I'll start studying them more and probably make a few picks, but at this time no, because generally they seem highly priced to me.

I thought you could buy ETF's at those 401K plans. I suppose you can't buy options too, right? (or I could search for in the money and "less" risky options).

[garyaross]

David, The ETF "SLV" is pricing around $141.  Right?

[David Randolph]

David, The ETF "SLV" is pricing around $141.  Right?

Right.

[realcoolhead]

Confused: if you are not such a bull in Gold & Silver, why buy SLV?

If I'm right on my bearish scenario, money will leave stocks around the world and will look for safe havens. Bonds will work for the short term, but I see longer term risks there.

Gold & Silver will probably be bid higher as a safe haven in times of economic uncertainty. I'm not such a bull in Gold & Silver shares because they trade at such high valuations (maybe discounting the future in the precious metal prices).

There is this ETF, the IShares Silver Trust (SLV), that accurately reflects the price of the silver futures.

The 3 year chart tells me Silver is forming an ascending triangle and is about to breakout to the upside, as the bull market continues.

Trading Plan:

Buy 6.66% of capital in SLV.

[buddjas1]

I think he means gold and silver manufacturers, but I could be wrong. 

[David Randolph]

realcoolhead, I'm a bull on gold & silver, the metals. But not such a bull in gold and silver mining stocks, because their valuations already, at least partially, reflect the rise in the metal prices that I forecast.

Anyway, probably there are good picks outthere in that space. I'll have to study them.

Good morning

[tokyopua]

I had SLV on D day Tuesday, it went up in the morning and sold off.  Be a bit careful with this one too, I sold it cause it still seems to act like a stock even though its an ETF....

[David Randolph]

I had SLV on D day Tuesday, it went up in the morning and sold off.  Be a bit careful with this one too, I sold it cause it still seems to act like a stock even though its an ETF....

Yes, Gold & Silver (the metals) have been trading somewhat in tandem with stock market indices. I expect them to decouple and trade based on their value as an alternative financial asset (that is money, as opposed to dollars), but the jury is still out if that is going to happen or not. Perhaps not immediately, this things take time.

Thanks for the warning

[realcoolhead]

I see. by the way, ETFs are treated like stocks so I don't think people can buy them in their 401Ks. Also one needs to buy at least 100 shares of SDS or QID etc... no odd lot it seems.

realcoolhead, I'm a bull on gold & silver, the metals. But not such a bull in gold and silver mining stocks, because their valuations already, at least partially, reflect the rise in the metal prices that I forecast.

Anyway, probably there are good picks outthere in that space. I'll have to study them.

Good morning

[David Randolph]

I see. by the way, ETFs are treated like stocks so I don't think people can buy them in their 401Ks. Also one needs to buy at least 100 shares of SDS or QID etc... no odd lot it seems.

Yep, I had to invest a bit more than 6.66% in each to make a full lot. Since ETF's are treated like stocks, and people can buy stocks in their 401Ks, why can't they buy ETF's?

Thanks