Interview: Why Silver Is A Compelling Investment This Year (SLV)

long and stacked silver bars

From Collin Kettell: Lobo Tiggre, better known by the pen name Louis James, discusses the launch of his new investment newsletter “Independent Speculator” and his reasons for starting it. He believes we are approaching an up-turn in resource market and is looking to take advantage of the coming market.

Lobo takes a rigorous approach to investing in stocks, and he puts his own money into his picks. He wants to prove the story which means meeting the people behind the companies and seeing things firsthand. Often the devil is in the details which probably won’t be in a corporate presentation. He says, “the numbers do not tell the whole story.” Mexican Gold Corp has caught his attention and he is planning to visit.

The market both shows scary and promising headlines some are good for precious metals and other news is good for industrial metals. What are you interested in, you need to learn why you should be in speculations so that you know the reasons why you are in them. Play to your strong suit.

Lobo quotes Rick Rule, “You should never confuse inevitable with imminent.” Currently, commodities seem to be in a pattern where the equities aren’t rising as fast. You should look for these price divergences and use them to your advantage. It’s hard to say when markets will shift, but it could come at any point. Look for companies that are making money at today’s prices. The market drivers are what they have always been, fear, greed, and the commodity super-cycle.

Silver is the often unloved step-child, but it follows nicely along with gold, and it’s an industrial commodity. Many people don’t realize that silver is also an energy metal since solar panels use a lot of silver.

The iShares Silver Trust ETF (SLV) rose $0.18 (+1.18%) in premarket trading Wednesday. Year-to-date, SLV has declined -4.69%, versus a -0.70% rise in the benchmark S&P 500 index during the same period.

SLV currently has an ETF Daily News SMART Grade of B (Buy), and is ranked #8 of 32 ETFs in the Precious Metals ETFs category.

This article is brought to you courtesy of Palisade Research.