Thursday, December 22, 2011

Silver and Gold

There’s so many false information going around regarding Gold and Silver.  The most important thing to know about these 2 assets is that they are not as safe as people think.

When you take a position on these commodities, you are not only making a bet on their future price, you are also making a currency bet so :

Long commodity = Short USD
Short commodity = Long USD

Now there is a lot of talk going about fiat currency going bust in the future.  I suggest you ignore the rubbish and trade what you see.
I suggest to short gold and silver.  You can do that via ETF or with futures.  I personally bought calls on ZSL (double short silver ETF).

  • Gold is at 1616.30 USD.  It’s going to 1350 USD
  • Silver is at 29.36 USD.  It’s going to 18.00 USD

I’ll post an update in a few weeks.
Let me know what you think.

The Imperatore

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