Investing In Silver: Mortgage The House At $25 (SLV)

Although many traders are looking for silver prices to rebound after last week's record plunge, one money manager says we're only halfway to a bottom. And when silver does bottom in a couple of months, an investor might consider mortgaging the house. "What we saw last week in silver was only the beginning," says an American money manager who, at present, can only be identified by the moniker Bluestar. "We're not even close to seeing the level of fear you would usually expect in a bottom." "We can see a bounce of three or four dollars in the price of silver," says Bluestar, "but keep in mind that algorithms don't care if the price is up or down. They are adding to the pressure of the trend and the trend for now is down. The forced selling is not over." The two leading exchange traded funds that track the price of silver, iShares Silver Trust SLV and Sprott Physical Silver Trust ET PSLV, fell over 26% last week. "When silver is around $25 an ounce, that'll be the time to go all in. Even think about mortgaging the house," says Bluestar, who manages money for the wealthy clients of a major bank. He sees silver bottoming near the end of June or the first couple of weeks of July. Silver is up sharply in early trading and investors wanting to bet against Bluestar can look to Silver Wheaton SLW, First Majestic Silver Corp. Ordinary Shares AG, and ProShares Ultra Silver ETF AGQ.
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