Buy Silver   6 comments

An important press release from the London Silver Market Fixing Ltd., otherwise known as “large banks that manipulate the price of silver for their own benefit”:

The London Silver Market Fixing Limited (the ‘Company’) announces that it will cease to administer the London Silver Fixing with effect from close of business on 14 August 2014.

In the past few decades, silver hasn’t moved much, aside from it’s recent run up into the $40’s. Now that the big banks will be stepping aside, we should see some serious movement in the silver market.

On top of this, the price of silver is already near it’s bottom, around the $19 area, but currently trading at $19.56. The technicals show silver with a multiple bottom, which is a bullish sign. In addition, both the MACD and the PPO show silver with bullish momentum, while the RSI is neutral (not overbought or oversold).

My recommendation: buy silver. For conservative investors, I recommend ETFS Physical Silver Shares (SIVR), an etf backed up with physical silver. For companies, I still would recommend Silver Wheaton (SLW), although their price can also be impacted by gold since they have started moving into that market too. For more daring players, there is ProShares Ultra Silver (AGQ), which is a double-leveraged etf.

Later, I will be adding SLW to my 401(k), and AGQ to my IRA. While silver can drop a little, I feel safe that the bottom is in.

UPDATE
: I added AGQ to my IRA at $63.55.
UPDATE: I added SLW to my 401k at $22.20.

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Posted May 14, 2014 by edmcgon in 401(k), Portfolio Moves, Precious Metals

6 responses to “Buy Silver

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  1. Ed, you maybe right but, there is less risk if you wait for SLV to break above 19.50. It has failed at that level several times. Is this a trade or investment?

    • If I had to define it, I would call it a “mid-term trade”. I am putting SLW in my 401k because of it’s dividend (ex-div is in 2 days), and I plan to keep it at least until August, but there is a possibility I might go longer.

  2. Morning Ed and all…

    I bought SLW ages ago when you did and have held on for all this time collecting a small dividend quarterly.
    Hope all is well with you and the family.

    Cheers!
    Leigh

  3. Hanging out up here in Hiawassee! Weather is certainly more agreeable too…open door policy if y’all decide to visit up this way. Teaching line dance classes at the Senior Center twice a week, taking 3 classes myself back to back over in Blairsville once a week, playing Mah-Jongg with other ladies, trying to build the Lego Tower Bridge, and reading good books!! 🙂 Sometimes, I feel guilty about having soooo much fun!

    Will be heading your way first week of June are you still on Skidaway Island??

    • You sound like you’re having a blast! Hiawassee is nice this time of year.

      As for me, I’m over in Pooler now, but I am still close to Savannah. Let me know when you’re going to be here, and we can make plans.

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