Seeking Alpha/Andrew Hecht/4-13-2020
“The recent action in the physical silver market was a sign that a bird in the hand is worth two in the bush. Owning the physical during periods of distress in markets is preferable to products that replicate the price action in the metal. Products like SLV that hold the silver metal and USLV, which is a triple leveraged silver product, followed the price lower and then higher as the metal recovered. However, this paper silver depends on the integrity of the product if a squeeze continues for a prolonged period. There are no guarantees when it comes to anything but the physical. I have been a champion of silver ETF and ETN products as they have an excellent track record of following the price action in the futures market. However, in the current unprecedented environment, I prefer to hold the physical metal. The only asset that is silver is the metal itself.”
USAGOLD note: Andrew Hecht has a change of heart and mind – from the abstract to the concrete. To read the rest of his rationale – a long-time professional in the gold and silver markets – please go to the link above.
