SLV is currently sitting at $15.98 US yet spot is currently at $16.69 US, I thought SLV was supposed to mirror spot. Maybe one of the more knowledgeable members here can enlighten me.
SLV sells silver each month to pay for the management/storage fees, so the amount of silver backing each share declines over time. If you check their website you'll see exactly how many ounces is behind each share and I bet that will explain the difference.
When the time comes I'm looking at throwing some money on GDXJ to magnify at gains on the spot price of gold and will sell out and switch to physical if things start looking hairy.
Ok, I think i just had a moment of clarity as i sit here with a cool glass of irsh whiskey. I had planned on waiting until the current downturn (wave B) concludes to then take a substantial position in SLV. I'm now thinking (hit me like a lightening bolt) that I should not wait at all, why not take that position now in DSLV (3x ag inverse index) and make money on the drop, then when it changes direction dump everything and take the same position in USLV (3x ag index). I could then repeat for as long as the waves continue. This sounds too easy but I'm seriously thinking about pulling the trigger in the morning. What am I missing?
I don't think it makes any difference whether the ETF is inversed. It's 3 x leveraged and the the ETF resets its leverage on a daily basis which is why time erosion is such an issue. The only time anyone should ever contemplate a leveraged ETF is when a market is either going to the moon or crashing (inverse)
