Why are most people looking at all other resources and not Silver?
Honestly I don't know. You hear Platinum, Gold, Oil.. sometimes even Natural Gas! Lets not dwell on their actual usage and industrial applications.. which I think the list will go forever.
Ok yes I hear you Tat Soon.. so tell me about why Silver?
In fact it boils down mainly to the actual levels that they are right now. Yes it is all about risk and rewards ratio. Lets reference using the spot price of Silver.
It has been trading for the past months between $18.93 - $22+ with several support regions that are constantly mentioned around 19.40 - 19.70s. The breakdown to low $19 saw almost an immediate reply from the Bulls.
So what's next?
I personally think the risk rewards is pretty compelling and will consider an ultra long silver 2 times.. via $AGQ.
Entry levels: When XAG (silver) is nearer to $19.30 - $19.50 I think if I remember correctly $AGQ will be at the lower end of $60 pricing.
Go for it with a 10% cut loss for $AGQ i.e. you are pricing in a 5% cut loss level for the actual silver spot at the low $18.
So what's the target price?
Silver should easily breach $22.50 and I think move towards $27 though I cannot pin point an actual time frame (yet). Even at immediate resistance near $22.50.. that is a good 15% upside on XAG and of course... 30% upside on your $AGQ just in the short term.
T S Ho
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.