UPDATE ON VERY LONG-TERM SILVER POSITION SHORT FROM ABOUT $50 $PSLV $SLV $SLW $GLD $GDX $GDXJ #SILVER

There is a very long-term short position from a time when silver was near $50.  This short position was done throughPSLV. The position is short from an average price of $22.02.  As of this writingPSLV is trading at $5.56 and has traded as low as $5.23.The reason it was done through PSLV is because PSLV was trading at a substantial premium to the underlying value of physical silver.

At the time of the post we wrote,

Aggressive investors who want to initiate a very long-term position may consider building up to 100% if PSLV rises from here over $21.50 and then not touch it for years and not use stops on this very long-term position.  Any future posts on silver will not apply to this position unless specifically stated.

The Beauty Of The Trade

The beauty of the trade is that on the average we short sold at about 22% premium to the value of the underlying physical silver.  As of this writing PSLV is trading at a discount of 0.57% to the value of underlying silver.

This means that we gained about 23.5% just by premium evaporating in addition to the gain from the fall in the value of silver.

What To Do Now?

Recently, we upgraded silver ratings to Mild Buy in various short-term time frames.  So far that call has proven spot on.

It is important to remember that this PSLV position is a very long-term position.

Those holding this position may consider continuing to hold.  There are further gains likely ahead.

It is worth noting that along the way as silver has fallen, our subscribers have realized very substantial gains from very short-term trades, short-term trades, medium-term trades and long-term trades.