Jan. 23 at 2:17 AM
$SLV $GLD when an industrial use metal like Silver becomes expensive, so too do the products it is used in (as the companies will want to maintain their profit margins)
This means one of two things will happen:
1) alternative designs or materials will be used (yes silver is the best conductor but there are cost/benefit tradeoffs to consider)
2) the demand for those products will decrease due to the higher prices
“2” is coincidentally partially why silver doesn’t do well in recessions (unlike gold)
In any case there is an equilibrium that will push silver’s price back down.
I base my trading on mathematical principles and logical flows, not on FOMO feelings.
Right now I have a very small short position but will short hard tomorrow esp above
$100/oz
$SILV $AG
