Checking in on that bet on Silver
Readers may remember that back in May I made a stock market investment in Silver, hoping
… that silver would rise in the short term, bouncing off $35 an ounce and continuing its bull run.
Let’s reexamine that investment, now that almost a quarter has gone by.
On May 9th, Kitco.com shows that Silver in London was fixed at $38.00. Today it was fixed at $40.34, and Kitco is reporting a current market price of $40.83. This represents a price change of +6.2% in a mere 78 days, or, if you assume the same rate of growth over a calendar year (the annualized percent return), +28.8%.
That would have been a pretty good bet to place, as it beats both the “official” government inflation number (worthless though it may be), and the realistic inflation number of 10-20%. For full disclosure purposes, I closed out the bet I placed on May 9th at a profit, and opened a new position similar to that one a few days ago. So far, it is profitable. Of course, there are other bets you can place on precious metals, such as SLV, AGQ, and the hard physical metal itself.
Maybe I do have a talent for this money and investing stuff after all.