After a couple of months up without a reset, I wouldn't be surprised if we have some weakness this month. Perhaps a good opportunity to build the Jan 2023 LEAP positions. Believe that at that point, SLV will have cleared 30 with now problem so have been building 20-40 and 30-50 call spreads.
Interesting to note that on the way up as well as the way down, the 20-25 territory has been like butter, each way, until recently. Think that this work SLV has been doing in this range is constructive.
Also notice that three times now, SLV has tried to break into the next tier higher, 26-33. It has met with resistance each time. Perhaps SLV needs to slip down a little this month before making the surge next month.
The only problem with having to play the long game in the PM paper market, is that as now the Treasury joins the Fed in flooding the economy with dollars, even if my paper PMs double in value, not sure that I am ahead of the game. Physicals seems to be the only real way to go. At least with increasing premiums, one can see that the physical market is acting more like a real market than the paper. Really though, silver should be in triple digits by now. With the cost of energy heading higher, how will mines be able to continue mining without dramatic increases in sales prices. Does take quite a bit of energy to drill and process this stuff. While many hype the miners as a high beta play to the metals, if PM prices continue to remain suppressed, miners' earnings will take a hit.
Interesting to note that on the way up as well as the way down, the 20-25 territory has been like butter, each way, until recently. Think that this work SLV has been doing in this range is constructive.
Also notice that three times now, SLV has tried to break into the next tier higher, 26-33. It has met with resistance each time. Perhaps SLV needs to slip down a little this month before making the surge next month.
The only problem with having to play the long game in the PM paper market, is that as now the Treasury joins the Fed in flooding the economy with dollars, even if my paper PMs double in value, not sure that I am ahead of the game. Physicals seems to be the only real way to go. At least with increasing premiums, one can see that the physical market is acting more like a real market than the paper. Really though, silver should be in triple digits by now. With the cost of energy heading higher, how will mines be able to continue mining without dramatic increases in sales prices. Does take quite a bit of energy to drill and process this stuff. While many hype the miners as a high beta play to the metals, if PM prices continue to remain suppressed, miners' earnings will take a hit.