there is some disagreement out there on what will happen if the ETF for silver is approved or if it is not approved ... I personally do not care as long as I am not long or short in any size as the news hits the wire in general this speculation has helped with the volatility which is good for the trading style of mine ....
gold actually sold off when the etf was launched. bottom line - there is a lot of risk on either side. personally - i see more risk to being short and my time horizon is super long as opposed to some of the more nimble traders on this post! so if it corrects a few bucks - i think it will be one of the last good entry points sub 10$. but who knows!
They've been saying the same thing for a long time now -- longs must be equally careful. I've seen YI drop a dollar in the space of 2 minutes with a "steady" 250 pt spread all the way down
Here is a link of T Butler's newsletter archive. It has lots of interesting information for traders with an interest in a longer outlook on silver. It's not for the ones that don't care about fundamentals of silver valuation . If you simply rely on TAs for your trading, perhaps it is irrelevant, though I would still read it. Fantastic FREE analyses. http://www.investmentrarities.com/tb-archives.html P.S. As history has a tendency to repeat itself, think of what happened to Hunt brothers, what will happen eventually, is a reverse scenario involving dealers this time, no doubt, the question is when. If ETFs are approved, perhaps there will be short term downtrend, but when the buying kicks in, shorts will be forced to buy to cover driving the price of silver even higher. I recall speaking to my broker about a year ago, silver made an up move of around $2, simply by JP Morgan buying a shit load of contracts and you talk about Barclays going in as a big Q regarding the price?
He's a permabull, pure and simple -- pretty much useless for short-term traders and very dangerous for johnny-come-lately longs. Yes, it's been a nice ride if you were long since $5 and if so then you've got a nice cushion to ride the volatility, but where are you going to put your stops if you get in at this price for playing the long term "fundamentals"?
IMHO, the more passionate the poster, the less I trust them. Instead of a stop, where you can get very real slippage, consider a Put as your downside parachute.
I'd be interested in hearing what you guys think of this article. As a newbie to silver, I can only say that the read makes sense. But that's about as far as I can go. Thoughts? http://www.resourceinvestor.com/pebble.asp?relid=17599
When I read the article, i was struck by some of the wording. Goldbugs are never happy. First they want metal off the market, then they dont, then they want secure vaults, then they dont. Then they want transparency in who holds what, then they dont. You just cant please most people.