Home » Blog » silver

Why Work Yourself, If Silver Can Work For You? (My Silver Strategy)

In the past 20 years I traded nearly everything you can trade, including commodities. Since about 10 years, I have gone from purely emotional trading to systematical rule-based trading. Today, I don't trade anything anymore, if I cannot reproduce a positive backtest of my trading strategies. Today I stopped trading commodities, because it is very difficult to get good results with backtested strategies. My core investment strategy is the "Global Market Rotation Strategy", which I presented in my first Seeking Alpha contribution. This is a very good and safe strategy and also this year the return is already 28.4%. The only commodity I trade at the time is Silver. With Silver it is different. There is no way to include silver in a successful rotation strategy. Silver is much too volatile and it is much too easy for big investors or banks to influence the price. However, one thing I still think I understand is the value of something. I do not like value investing with shares, because shares can go to 0. With commodities it is different. Today you can buy silver for $22/ounce and we know that production costs are between $25-$30. Even if there is no shortage of silver at the moment, I think for a longer term investment silver is extremely interesting. No commodity ever remained for long time below production cost. With such a constellation the downside risk of the silver price is much smaller than the possibility of higher prices. The other interesting argument for a silver investment is, that silver is extremely cheap to buy. I am using a broker (Saxo-Bank) in Switzerland which allows you to trade silver like a Forex currency. I can buy nearly every amount of silver with extremely tight spreads and no initial margin is required. With [...]

2017-10-02T20:00:00+00:00 By |0 Comments