New Lows Coming For Silver?
Time To Buy A Silver ETF?
Silver isn’t acting so well…
The precious metal is currently in the process of seeking out yearly lows at the $15.50 an ounce level.
I can assure you, the downturn is exactly what subscribers to my Options Profit Pipeline service want to see. On June 22, I alerted them to a put buying opportunity in a top silver ETF- the iShares Silver Trust $SLV. At the time, we paid $0.67 for the July 2015 $16.50 strike puts.
As of yesterday afternoon, those same puts were trading for $1.29- a 92% gain.
Not bad for a few weeks’ work.
Where does silver go from here?
As you’re likely aware, this isn’t the first time the metal has been on the defensive this year.
Silver traded down to the $15.50 area in April, March, and early January 2015.
However, each time it fell to this solid support level, bulls carried the metal sharply higher in following weeks.
Let me show you what I mean…
As you can see, each dive into the $15.50 area this year has been met with strong bullish action in following weeks.
Will the same thing happen this time around?
I’m not so sure…
With May’s unemployment report coming in better than expected last Friday, there’s a growing likelihood Janet Yellen and the Fed starting raising interest rates soon. As it sits now, the market is expecting a rate hike in late summer- possibly September.
As a result, there’s a very good chance we see additional upside out of the US Dollar- something I spoke about in depth a few weeks ago.
Thanks to all these bearish headwinds, there’s a growing chance silver breaks to new multi-year lows in the near future.
If the metal loses the $15.50 support level, there will very likely be a rush for the exits that will take it quickly below $15.00 an ounce- the lowest price since early 2010.
How do you capitalize off price fluctuations in silver?
One way to do it is with the aforementioned Options Profit Pipeline. This one of a kind service has a laser like focus on low risk/high reward option trades in commodities and the companies producing them.
But you can also look to commodity ETFs…
There’s a great offering of low expense ratio silver ETFs that provide both bullish and bearish silver investors an efficient means to speculate.
I’ll give you a list of the top silver ETFs the market has to offer on Thursday…
Until Next Time,
Justin Bennett
BIO: Justin Bennett is the head commodity research analyst at Commoditytradingresearch.com. With over a decade of real world trading experience, he finds ways for you to consistently profit from movements in commodities and the companies producing them. Sign up for our free reports and commodity newsletter at https://commoditytradingresearch.com/free-sign-up.
Category: Precious Metals, Silver
