We're on a descending triangle here. He likes silver and gold. Silver could test August highs, so there's a lot of upside here. Meanwhile, gold will retest its own highs, higher than the current price. Also, there's strong seasonality in precious metals into February.
(A Top Pick Jul 13/20, Up 36%) Would be inclined to go into silver than gold for new money. Has been a disappointment relative to what he thought it should do. Economically sensitive. Used in solar panels and 5G technologies. Lots of applications driving demand. If the USD weakens, then silver would be even more attractive.
Silver does better later and will catch up to the gold rally. He owns both minerals. This is a pure play on the silver commodity, so no worries about jurisdiction risk in individual silver stocks.
(A Top Pick Jan 07/20, Up 0.3%) Silver has been going down. But now we are seeing a bump positive. Unfortunately Silver is finished its seasonal strength.
Relative to gold's price, silver is now cheap. Late-December to late-February is seasonality. We're seeing a slight uptick. Silver had a strong run in summer 2019. This looks quite positive.
He just legged into silver buying bullion. He thinks $16.10 would act as good support. He usually targets three legs to get into the full position, so he is just getting going. Gold broke out above $1350 resistance around mid-year and looked for a pullback once it breached $1500. He sees gold now being constructive again. He is into 2% of his total position that will reach 10% of his portfolio eventually between bullion and producers.
Silver ETF? A silver-only ETF is hard to find. Better to buy individual silver stocks or an ETF that carries other precious metals. He likes silver more than gold which he's been buying.
Silver When gold moves, usually silver moves more because of the gold-silver ratio. He does not have a formula for how much to hold in a portfolio. He would favor owning the SLV-N ETF.
Silver is a quasi precious metal and quasi base metal. It lagged gold but it has room to go. make a buck or two in the position and out. Not for the faint of heart.
The outlook for silver is pretty good. Some of the stocks have been good or better performers than the commodity. Any silver stock is good if you have a decent time horizon. He likes junior producers in silver whereas he prefers the larger caps in gold.
The whole gold bullion space has been spectacular, but hasn’t been without a lot of pain for a very long time. He would prefer First Majestic Silver (FR-T) or Silver Wheaton (SLW-T). Keep very close Stops on these types of names.