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written by reader Silver exposure

By pvbemmelen, October 1, 2014

Hi Myron,

I remember reading one of your posts earlier this year that mentioned a leveraged play towards silver. It concerned a silver fund with between 2 to 3x multiplier if I remember correctly. Single equities are not an option for me, so I would appreciate if you could get back to me on this.

Much appreciated!

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ryansch
October 1, 2014 4:43 pm

Hi Peter, I’m no Myron Martin, but check out this link:
http://www.pmbull.com/silver-etfs/

Hopefully he returns soon! I’m trying to decide whether to double down on my silver miners or not!

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Myron Martin
Irregular
October 1, 2014 6:45 pm

Hi Peter, there are any number of dealers in silver that have arrangements with banks to provide 2x and even 3x leverage, a loan at specific interest rates and they can be 2 edged swords. IF you get the direction and timing right they can give you magnificent returns, on the other hand, if you misjudge the bottom as has happened in the past 6 months for a loy of people who thought the bottom was in, you can end up with some nasty losses and margin calls. I had one guy out of Panama pestering me to sell some of my stocks to raise $5000 because he was sure he could triple my money in short order when the silver price was around $19.50, and look what happened. Did it once before with a different company and got back $14,000 in 18 months, and had I stayed in another few months instead of listening to Larry Edelson who scared me out of the position, I would be an additional $10,000 richer. I say that not to dump on a prominent analyst, but to point out that TIMING is crucial and you should always get a second opinion, as even the best analyst will make some bad calls from time to time., but ultimately the final decision is yours alone.
Since I have no way of knowing WHY you say “single equities are not an option” I can only comment that are at least a half dozen grossly undervalued major silver producers out there that would provide major leverage to the silver price when the market turns, which it surely will.

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Lulu
October 1, 2014 9:23 pm
Reply to  Myron Martin

Martin, can you expand on your last statement? ” half dozen grossly undervalued major silver producers” the key word being producers.
Thank youM

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tomd2228
tomd2228
October 1, 2014 11:10 pm

Great to see Myron respond.Hope he will continue to provide us with his wisdom.I am sure their are many of us who miss him.

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altomaremarie
altomaremarie
October 2, 2014 2:07 pm

You’ve got that right, Paesan. I have a half dozen silver stocks
that are apparently grossly overvalued.

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Lulu
October 2, 2014 2:49 pm

John, overvalued or undervalued?

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Pedro Tabano
October 2, 2014 4:01 pm

Myron,
I miss your wisdom too.
I hope to read you again soon
Pedro

altomaremarie
altomaremarie
October 2, 2014 5:34 pm

Lulu,

It means I paid far more than what they are worth today.
Would love to turn that situation around.

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Lulu
October 2, 2014 8:01 pm

Thanks for the answer….Im a newbie and I’m learning……I have worked out that averaging down doesn’t work well either when the stocks maintains a downward trend. Oops live n learn!
I’m in your court on that turn around to bring us to the point where we sell at break even with a sigh of relief and watch it roar ahead, or hold again. I seem to pick the wrong way! More studying required.
Cheers

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providence4
Irregular
May 28, 2016 4:14 pm

Anyone familiar with Jim Rickards “Penny Golds”?

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