1Wk·

Silver is a critical raw material for the first time

Today we are not talking about rare earths in the commodities sector. Yesterday, the USA declared silver a critical raw material. This will give an additional boost to companies active in this sector in the USA.

Before anyone asks me, no, I am currently invested in silver apart from a long derivative on silver and in $PPTA (+1.29%) I am not invested in this area.

Silver has been a "critical commodity" since yesterday. Specifically, the USA has placed silver, a classic precious metal, on the list of critical commodities for the first time. The list of critical minerals serves as a guide for the US government's strategy, capital deployment and approval procedures for domestic extraction, recycling and processing. The update is part of efforts to strengthen economic and national security by reducing dependence on foreign supply chains and accelerating production and innovation in the US.

54 Comments

Mo@BigMo

1Wk

The pieces of the puzzle are slowly coming together 😁
I've been long silver for some time with just under 3.5% of my portfolio.
There is still a lot of potential, especially if the 1980 and 2011 highs are broken 🚀

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Chris@Multibagger

1Wk

@BigMo I also think that silver will rise to 50$ by the end of the year

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Epi@Epi

1Wk

@BigMo Are you also leveraged in silver?

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Mo@BigMo

1Wk

@Epi No. My allocation is based on position size.
I expect quite a bit of downside volatility over the next few years until the ATH is surpassed.

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Epi@Epi

1Wk

@BigMo Clearly, an unleveraged variant is better in this scenario. However, there are also some downside risks with the USD. Have you actually hedged your silver position accordingly, e.g. via $ESVR?

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Mo@BigMo

1Wk

@Epi For that, I would have to believe in a consistent continuation of the EUR's great strength 😁

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Epi@Epi

1Wk

@BigMo No, you don't have to. It's enough if you believe in the USD cycle since 1970 and accordingly in USD weakness over the next few years. Trump wants that too and is currently doing a lot to achieve it. In my opinion, a weaker USD is much more likely than a stronger one. 😁

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Chris@Multibagger

1Wk

@Epi we will see prices between 1.25 and 1.30 next year at the latest.

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Epi@Epi

1Wk

@Multibagger I think so too. It will catch many US equity and gold investors on the wrong foot.

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Mo@BigMo

1Wk

@Epi So why don't you use EUR-hedged components in your portfolio?

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Mo@BigMo

1Wk

@Multibagger If you are both so sure, you can make a USDEUR short bet 😬

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View all 22 further answers

Epi@Epi

1Wk

I have also heard about the classification. But it's not entirely clear to me what this means for the silver price.
Will there now be more investment in US mines, increasing supply and lowering prices?
Or will more silver now be hoarded in the USA, demand will increase and prices will also rise?

I have been invested for some time. Physically and for a few months now also with a smaller position in $3LSI. Cash is available for a quick top-up and is used again and again. 😉

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