So I have 100 shares just sitting in my Roth IRA. No income...But good inflation protection. The current price is $27.17. I could option the Jan 25 $40. and get $68.-$69. for the option (covered call). Should I go with the diddly/squat income or let it ride...?? PS I do own some gold and silver coins...
%% USUALLY /SPY+ QQQ will do much better; not 2024,YTD [Jan -May], SLV = better. Some may sell some silver coins above $50, some may not.
As in many other things, The silver futures (or equivalent) could go up and up, or the price could go down (eg silver futures dropped very massively from 50 in Apr 2011 to 12 in Mar 2022 despite the shinning glistering precious metal). Even if it could go up and up, it might not happen in our lifetime.
I treat it like insurance...Hoping to never use it. Then I think...Get some cash flow. An over 70% potential return (including the $68. interest float)... I go back and forth between that and super inflation... Just me...
If you look at the recent spreads between paper and physical it seems to have something shady going on. I suspect the play if you're wealthy enough right now is in buying comex silver contracts. If the paper vs physical diverges again, take delivery, melt it down and sell 1 oz bars. Or if inflation drives the paper price up, sell the contract.
I will NEVER forget an experience I had in then communist Poland while doing independent research, right after martial law was lifted, but there was still much oppression. There was suddenly a very large line of people going into a store. I heard someone yell : SREBRO, which means silver. The store in Krakow had somehow gotten a hold of an extra quantity of Sterling silver forks and spoons, and people were desperate to get a hold of them. Poland was and still is a top 5 worldwide silver producer, producing more than both Russia and the US. But back in the 80's it desperately needed hard currency, so almost all of it was exported. I did manage to pick up one historical silver coin while there, paid $5 for it with a US note on the street in a shady section of Warsaw in a rougher part of town across the river. It is now worth about $40. The sentimental value of it to me is greater than that. The US is in an increasingly precarious national debt/interest payments situation and political strife, with significant danger of major instability. Do you feel that the quantity of silver and gold coins you already have in your possession is adequate for insurance purposes? IF so, then by all means go ahead and do the option trade you outlined. But if you really want that extra insurance provided by the silver ETF, don't do the option. Another possibility is sell it and instead buy some additional silver coins, while they are still extremely cheap compared to the historical average silver/gold ratio...
SLV I also, have shares. Now, thinking of selling put options since, I believe SLV is headed higher. Put options will probably, lose value faster if SLV runs up. Just my 2 cents.
Am long term Long Silver, price making triple top but am expecting it to blow through it. On monthlies.