- Strong trading range over past 3-4 months.
- Relatively cheaper compared to Gold & Equities (Gold/silver ratio, Dow/Silver Ratio).
- Potential Long term breakout in the cards.
- Excellent risk vs rewards strategy.
Why do we keep mentioning range trading and money management on Silver (XAG) and AGQ?
1) Gold silver ratio
Right now it is exceptionally high and silver is looking increasingly (relatively) cheaper. It is currently near 65 which is high by most expert opinions and in their opinions should be nearer to 40 times.
2) Dow Silver ratio
As the equities market keep making new high, silver is stuck in a range that i am comfortable with. As the equities market keep making new high, i have no choice but to agree that the trend is your friend. But every time a new high is made without a strong follow through, i will shift more % of the investable cash into Silver.
3) Risk & Reward
I believe a breakout in Silver will happen (just that i don't know when), but having said that if i had held Silver for the last 3-4 months without an active trading strategy, i will just be holding on to paper gain. But trading as per the low 58s to 63s for AGQ, every trade will be about 6-8% gain and that has took place 4-5 times over the past 3 months raking in in excess of 30%.
My first buy call came in April 2014 "All That Glitters Is Silver ; Think XAG , $AGQ & $SLV"
TS Ho(click to enlarge)