I knew I shouldn’t have shorted SLV!
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Shorting silver in a plunging dollar market with gold on the move is almost as dumb as “going for it” on 4th and 2 on your own 28 , about two minutes to go and with the lead.
Heck, maybe it’s even more dumb. At least Belichick– with his multiple Lombardi Trophy mantle display– had an excuse to feel arrogant about his low-percentage play-calling. The silver bears, who were gold bears before that and stock bears before even that had no call to compound mistake after mistake by risking the last remnants of their capital on such an audacious call.
And now they are paying for it, or to be more incisive — paying me. [[AGQ]] which you recall I added when I heard that the “Reverse Lock” was shorting silver, is up another 1000 basis points this morning. I can’t imagine what that’s doing to the leveraged short ursines, but it’s gotta be something close to being drawn, quartered and then lightly salted/lightly peppered before being chucked on the grill, marbled T-bone style.
Amazingly, silver has decided to catch up to gold this morning, with an over one dollar move (price of silver is up $1.02 cents as I type this, or 5.9%) today, the silver to gold ratio now stands at a stunningly low 62x, down from 64x as of late last week.
Gee, I wonder if that move to rationality is going to continue (remember, gold is continuing to rise as well)?
You’ve seen this list before, but at the risk of boring you, go get ’em:
Silver Wheaton Corp. (USA) [[SLW]] [[PAAS]] [[EXK]] Silver Standard Resources Inc. (USA) [[SSRI]] [[CDE]] Hecla Mining Company [[HL]] And a new one I haven’t talked much about — [[SVM]] .
Don’t forget about the pure bullion plays either. [[SLV]] is one time and [[AGQ]] is two.
Happy hunting, and watch for pullbacks. We are parabolizing here, so I am talking off the rest of my call positions today.
Best to you all.
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Addendum: Platinum is another precious metal in “catch up” mode. I’ve banged the drum on [[PTM]] enough times that you should have at least a little. This should be a continuing move, here, however. I am also considering, but have not yet bot [[PAL]] , which is a dodgy stock even in the best of times.
ROFL @ The Patriots.
Any SWC for you?
I did not, and have not owned it, but there’s no question it’s BTFO right now…
I’d wait on a return to $8.32 (ie, the breakout), which you’ll likely get with this one.
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Hi Ho Silver
In a Wayne’s World Accent
WERE NOT WORTHY
WERE NOT WORTHY
WERE NOT WORTHY
Haha, this is entertaining, watching the price of physical silver. I don’t play with the miners but I’m still really enjoying this, especially since most of my physical has been financed with credit.
I’m thinking of dropping a few stocks though and maybe slapping on a short or two for the remainder of the week; see if I can’t catch an inflection. Starbux is looking like it’s about due for a pullback.
Any thoughts Jake?
I may sell some of my high fliers — a portion mind you — into this parabola, but I am not shorting anything right now. Too much liquidity out there.
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Jake….several items:
1. Glad your little gir’s okay…took me back many years to all the er trips for daredevil skateboard son
2. No love here for constant commercial boy Manning, but yeah,lmao at the Darth Vader coach’s hubris and it’s outcome.
3. Recall (maybe a month or so ago?) you saying you had like a 1/3 position of NGAS and were thinking of adding to it. NGAS vs. CHK…what think you?
4. SLV was up 5.01% today and AGQ was up 10.33%. I guess that’s your “double” for the 2x leverage. However, at the current share price you can buy over 3x as much slv as agq for the same dollar amount. Seems to me that slv is by far the better value proposition. What in the heck am I missing??
TIA
NGAS — I still have only that starter position. I may start to accumulate a little more here, but am waiting really for a general market pullback before I do that.
Not really sure what your question is regarding share price. The value of the shares of SLV are more or less related to the exact price of an ounce of silver, minus a bit for transaction costs.
The value of AGQ is related only to the last move in silver. In other words, mathematically, it moves 2x whatever silver just did. If you started them both off at “par” today, then AGQ would be 36 (ie, 2x SLV). But if SLV goes up two days in a row, AGQ is in essence being bid exponentially — ie, 2 squared, etc.
So if you took the simple example of silver rising 5% three days in a row, starting at 18 for SLV and 36 for AGQ, you see the separation pretty quickly.
For “regular” SLV, the progression would go 18, 18.90, 19.85 and 20.85 by the end of day 3.
For AGQ, with the doubling of each move, you’d get 36, 39.60, 43.56 and 47.91.
So you can see, you are just buying AGQ to leverage that move, as you know also that such moves can go the same way in reverse. The reason AGQ is so high right now is simply because there have been a lot more up days recently than down.
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