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It's absolutely idiotic to own SLV for two reasons, says technician Peter Brandt. First, he...

It's absolutely idiotic to own SLV for two reasons, says technician Peter Brandt. First, he believes fans of silver get a far deal better trading the futures, rather than the ETF. Second, the daily chart remains in a strong downtrend, and a break much lower puts long-term support of $25.50 in play. Beyond that, the next major support is $20.75.
Comments (20)
  • divestor
    , contributor
    Comments (93) | Send Message
     
    I sure hope he is correct. I would love to add to the stack at $20.
    28 Mar 2013, 01:10 PM Reply Like
  • Factzplz
    , contributor
    Comments (226) | Send Message
     
    Oh sure, that makes sense -- mom & pop investor at Ameritrade, Scottrade, or E-trade are now going to trade futures markets with 50:1 leverage.

     

    It seems Brandt's idea is another Wall Street scheme to crush small investors to pad his/its pockets. The top 10% of investors own 80% of all stocks -- so let's get Main St. on the futures game and make this even more lopsided.
    28 Mar 2013, 01:18 PM Reply Like
  • Donald MacLeay
    , contributor
    Comments (45) | Send Message
     
    I have to agree with divestor's comment. Big players in the precious metals are being drawn into the Japan stock market where the fiat currency dilution game is afoot. It is a good time to buy more physical.
    28 Mar 2013, 01:23 PM Reply Like
  • Dampflok
    , contributor
    Comments (811) | Send Message
     
    Don't forget, silver has a strong base of industrial users. A previous article put the cost of producing silver at about $26.50. If it falls lower, the mines stop producing and industry will gobble up what is out there. That should put a floor under it. Happy to buy at $25 myself.
    28 Mar 2013, 01:24 PM Reply Like
  • Mad Matt
    , contributor
    Comments (81) | Send Message
     
    What a bunch of BS from Peter the "technician". We know that the silver and gold markets are RULED by the folks trading the worthless paper future markets. DO NOT PAY ATTENTION TO THIS TRAP. Just buy real SILVER, like Am. Eagles, put away for safe keeping, and come back a few years from now and you will be happy DUDES. Let the technician IDIOTS keep manipulating the market in the meantime, and use the "artificial" big dips to buy more REAL SILVER. I just added to my stash. And all the eagles I bought for $7 years ago have quadrupled, but I still keep adding. Another good way is buying Central Fund of Canada, which holds real SILVER and Gold in the event you do not want to lug around tons of the metal. I need several mules to lug mine around, but don't need the mules just yet. FORGET THE PAPER TRADES. You will get beat every time.
    28 Mar 2013, 01:32 PM Reply Like
  • tealone
    , contributor
    Comments (232) | Send Message
     
    Let me know when it's time for the mules, I'd be more than happy to lug it around for you....

     

    Sooo..., anyway, I bought some physical gold and silver about 4 years ago and lost my arse on the "spread". It was my first (and only) "physical" purchase and the company (Lear) I bought from really hammered me. Since I didn't really know much about buying physical gold or silver, at the time, I really only blame myself. Since then, I have researched about 8 other companies and so far can't really say the spread scam is much different among any of them. Do you have any favorites that you can get a decent deal from? Maybe eBay is the way to go??
    29 Mar 2013, 08:48 AM Reply Like
  • Mad Matt
    , contributor
    Comments (81) | Send Message
     
    Tealone, please be patient. You are correct that you get hammered when you buy and sell physical gold and silver. Just buy (on the dips)and hold, because this is really INSURANCE against the excess printing of $$$$, and then just HOLD IT! It will eventually go up and up. And when it goes up 4 and 5 times, who cares about the lousy 10% premiums. Chump change!
    I bought some additional silver (1,500 oz of eagles--monster boxes) about two months ago, and the "premium" was around 10% over the spot price. And when you sell, it is another 10% cost. So this is NOT A TRADING VEHICLE AT ALL. I will never sell any of my physical metals until they quit printing, and this is the same as NEVER. All this PRINTING is going to end badly, and when it does, gold and silver will really ZOOM (when the populace catches on!)!! Not likely soon.

     

    If you want to do TRADING and yet actually "hold" the REAL metals, then the best vehicle I have found is Central Fund of Canada (CEF), which is traded on the NYSE. Please do your research on CEF. They hold at least 95% of their assets in REAL gold and silver, and there is no premium other than your broker fees. CEF IS SOLID. I bought a bunch of it several years ago for $4.00. Not a bad return from today's price.

     

    Fortunately, I bought a Hugh amount of silver and gold eagles in late 90s and early 2000s, and it has at least QUADRUPLED in price. But both will still continue to go up and up OVER TIME to compensate for all the printing of worthless $$$. As I said before, this is INSURANCE for your portfolio. GOOD LUCK....AND BE PATIENT!!! Think in terms of several years instead of weeks and months. You will not be sorry. MAD MATT
    30 Mar 2013, 11:44 AM Reply Like
  • Doug Eberhardt
    , contributor
    Comments (2778) | Send Message
     
    Tealone, I wrote a book exposing these companies that try to push buyers into crap metals with high spreads. I was instrumental in a settlement against one of them (Goldline), resulting in them paying out $4.5 million to a fund for investors who bought from them. I started my own company and sell bullion coins and bars only, with just 1% commission and guarantee lowest prices.

     

    I get calls all the time from people with your experience. Most just bought from these dealers because Glen Beck or Sean Hannity recommends them.

     

    Click on my name for more info.
    30 Mar 2013, 01:04 PM Reply Like
  • Brandond
    , contributor
    Comments (352) | Send Message
     
    Buying more SLV on the dip today. Wait till contagion spreads to Spain, Portugal and Italy. Plus, Silver is used in many industrial applications so, if the US economy is getting stronger, there is a nice floor in SLV here. Dumb comment from this "technician".
    28 Mar 2013, 01:53 PM Reply Like
  • Jimvickery
    , contributor
    Comments (438) | Send Message
     
    Yup, folks are selling paper and buying the real thing.
    28 Mar 2013, 02:42 PM Reply Like
  • The Protected Trader
    , contributor
    Comments (14) | Send Message
     
    I am buying MORE SLV on any Drop - Below $25 will be a great price if this geek and make it happen!

     

    I Sell DITM Long Term Calls - to Hedge my downside risk - and just roll them out before expiry - I have NEVER BEEN called out as I roll well before expiry for a Profit

     

    - I get Paid to own SILVER!
    28 Mar 2013, 02:48 PM Reply Like
  • stmartin47
    , contributor
    Comments (3) | Send Message
     
    I think I'll sell the house, the car, the wife and the dog and buy some silver and golden eagles!
    28 Mar 2013, 02:50 PM Reply Like
  • Ambil Kembali
    , contributor
    Comments (115) | Send Message
     
    As one of 17,360 Seeking Alphas who are alerted to news of SLV, this is unimportant news! I'll gladly use this idiotic hedge instead of the obviously even more stupid Gold! I suppose incendiary throwing about of "idiot" may apply to all-eggs-in-basket users. Why not try owning 2+ things and making sure the totality balances to zero losses?
    28 Mar 2013, 02:55 PM Reply Like
  • Brett22
    , contributor
    Comments (83) | Send Message
     
    Good article published today outlining the bull case for SLV in case you want to ignore the brilliant "technician" noted in the original article.

     

    http://bit.ly/16kKBwq
    28 Mar 2013, 04:15 PM Reply Like
  • dreadlordnaf
    , contributor
    Comments (481) | Send Message
     
    I saw the title and thought this would go into questioning what really is behind SLV, like what are you getting when you buy it.

     

    He is right on one thing, you shouldn't own SLV. If you want silver, by silver, not SLV. Read their prospectus. Here are a couple gems I copied and pasted from the SLV prospectus:

     

    "As an owner of Shares, you will not have the protections normally associated with ownership of shares in an investment company registered under the Investment Company Act of 1940, or the protections afforded by the Commodity Exchange Act of 1936."

     

    "The value of the Shares will be adversely affected if silver owned by the trust is lost or damaged in circumstances in which the trust is not in a position to recover the corresponding loss."
    28 Mar 2013, 04:39 PM Reply Like
  • The Protected Trader
    , contributor
    Comments (14) | Send Message
     
    It is not economical to buy Physical Silver or Silver Coins in the UK and some other countries where SALES TAX and/or VAT is added to the price. Not forgetting the PREMIUM - sometimes as much as 7%-10%
    If you pay just 3% premium Plus 20% VAT in UK - That's 23 % Gain just to break even - not forgetting the DISCOUNT when you go to sell them again. So SLV is the best option for me to get exposure to SILVER! No Premiums to Buy or Discounts To SELL and no 20% Vat.! I normally make another 1%+ per month on SELLING CALLS so I get Paid to Own Silver!
    28 Mar 2013, 06:31 PM Reply Like
  • Doug Eberhardt
    , contributor
    Comments (2778) | Send Message
     
    CFD, why not buy in U.S. and store it in U.S.? When it comes time to selling, you can do so with a phone call. The fees aren't that bad either. Message me if interested. You can also store in other countries like Canada; Germany and Singapore.
    28 Mar 2013, 07:35 PM Reply Like
  • Tas 2010
    , contributor
    Comments (256) | Send Message
     
    Bought more American Silver Eagles today. I love the constant reminder of seeing the ASE value at One Dollar but paying $32+ to buy it.
    28 Mar 2013, 08:44 PM Reply Like
  • butch926
    , contributor
    Comment (1) | Send Message
     
    ever thought about leaving the UK
    29 Mar 2013, 01:35 AM Reply Like
  • Nimbears
    , contributor
    Comments (6) | Send Message
     
    The rise in metals' prices (any metal's) are not over until 2020. But silver & gold will consolidate until Feb 2014.
    29 Mar 2013, 01:48 AM Reply Like
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