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Christopher Lewis
Silver daily chart, September 21, 2018

Silver markets are difficult to trade if you are looking to go to the long side. This is mainly because it underperforms gold. If the US dollar falls, it seems that the gold market will continue to rally much more than silver. Silver markets fall much quicker than gold does what the US dollar rallies. So I continue to use the following strategy: when the US dollar rallies, I’m looking to sell silver. If the US dollar falls, I’m looking to buy gold. Think of this as the market to express your “negative opinion on precious metals.”

I do like owning silver longer-term, but with the leverage that is attached to this marketplace, it’s probably best to buy physical silver like I have been doing over the last several months in little bits and pieces. Quite frankly, if you buy 2 ounces of silver at $14.35, and drops down to $14.25, you’ve lost a total of $0.30. With the futures contract, it’s an entirely different game.

If you do find yourself looking to go long silver for a longer-term trade, I suspect the Silver markets are probably best traded through CFD markets if you have the ability. Otherwise, simply use the same strategy that I’ve been using by looking at gold as “long only”, while silver is “short only.” This is all based around the US dollar, which is typical for these markets anyway. With interest rates going higher in the United States, I think precious metals will continue to struggle in the near term.

SILVER Video 21.09.18

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