Hello,
I am a big silver bull who has been buying bullion holding companies such as CEF since 2001 and the silver ETF SLV since 2006.
I am currently with Charles Schwab, but saw that etrade allows their customers to purchase futures. Does anyone have experience with this? I recently purchased some $15 January 2010 calls on SLV, but this type of stock option is thinly traded and deeper calls (i.e. 2011 calls) are not available right now. I would love to get my hands on some COMEX 2013 Silver Options. IMHO, silver has nowhere to go but up.
Consider this: An ounce of silver is currently trading at 1 / 70th the price of an ounce of gold, which puts the spread between silver and gold close to a historical high. With governments -- not just the US, but MOST major governments -- in a race to devalue their currencies and reinflate assets, it feels like silver (and gold) could have a sharp upside in the near to intermediate future.
I also have done research and have reason to believe that the world silver inventories are in short supply. Unlike gold, which is used primarily as a financial instrument, silver is used for industrial purposes. Worlwide silver bullion inventories in 1990 were 2.1 billion ounces; today they have dropped below 400 million ounces. In other words, silver inventories have dropped by more than 80% in the past 20 years, while the price of silver -- adjusted for inflation -- has been basically flat.
In the 1980's silver hit $49 per ounce, which is about $120 per ounce in today's dollars. If silver were to do the same thing today, that would make it a 10-bagger for someone who invests directly in the metal, nevermind the possible upside one could capture from buying options.
Best,
E
I am a big silver bull who has been buying bullion holding companies such as CEF since 2001 and the silver ETF SLV since 2006.
I am currently with Charles Schwab, but saw that etrade allows their customers to purchase futures. Does anyone have experience with this? I recently purchased some $15 January 2010 calls on SLV, but this type of stock option is thinly traded and deeper calls (i.e. 2011 calls) are not available right now. I would love to get my hands on some COMEX 2013 Silver Options. IMHO, silver has nowhere to go but up.
Consider this: An ounce of silver is currently trading at 1 / 70th the price of an ounce of gold, which puts the spread between silver and gold close to a historical high. With governments -- not just the US, but MOST major governments -- in a race to devalue their currencies and reinflate assets, it feels like silver (and gold) could have a sharp upside in the near to intermediate future.
I also have done research and have reason to believe that the world silver inventories are in short supply. Unlike gold, which is used primarily as a financial instrument, silver is used for industrial purposes. Worlwide silver bullion inventories in 1990 were 2.1 billion ounces; today they have dropped below 400 million ounces. In other words, silver inventories have dropped by more than 80% in the past 20 years, while the price of silver -- adjusted for inflation -- has been basically flat.
In the 1980's silver hit $49 per ounce, which is about $120 per ounce in today's dollars. If silver were to do the same thing today, that would make it a 10-bagger for someone who invests directly in the metal, nevermind the possible upside one could capture from buying options.
Best,
E
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