Are Investors Fleeing to Quality Trades?

Here we see how well flight to quality trades correlate against the S&P as a backdrop.

Comments

[Mad Hedge F...:]

xcv. Now that the stock market is rolling over like a cheap date, use the weakness, not to buy stocks, but silver. The US Treasury is relentlessly soaking the bond markets with ever rising amounts of borrowing, and loading up on inflation hedges during periods of weakness has to be a great idea. The American silver eagle $1 coin offers investors one ounce of .999 fine silver with a walking liberty design for $15, or 7% over the spot price. The premium on these coins has varied from $1-$4.50 over the past year, depending on the Treasury’s production rate, which is running at near double 2008 levels. Interestingly, an ever present flight to safety bid made sure that the premium never got below a dollar during last year’s liquidity driven crash in prices. If you had to pick a precious metal to buy on decline it would be this one, since it is already 34% off its year ago high, compared to only 9% for gold. If you need the size, liquidity, and low fees silver futures contracts offer, email me at madhedgefundtrader@yah... and I’ll tell you how to get set up. If you want to take physical delivery to hold it in your hot little hand, will it to your grandkids, hide it from a predatory ex-spouse, or bury it in your backyard, go to Millennium Metals at millenniummetals.net

Aug 18 12:49 AM