The Silver Commodity Trade in 2014 is off to a very strong start. So is 2014 finally the year the silver commodity trade is bound to take off?
In this blog post we’ll look at the silver commodity trade in 2014 and whether or not it is too late to get in on the action. We’ll also look at some of the best silver commodity trading instruments available to individual and self-directed investors. This should help you make the most of silver trading in 2014 as well as any other precious metal opportunities that might come up.
But first let’s consider the bigger picture…
2014 Commodity Trading: Silver, Gold and Softs…
2014 has been a very different year in the stock market than 2013. So far, the indices have wobbled around, threatening to break down and then appearing to break even. But through all the noise in equities, the stocks of precious metals, miners and other commodity players have been performing very well.
I’m hardly the first person to focus on it. But the opportunities in the 2014 silver commodity trade are getting pretty hard to ignore. Just take a look at the chart below…
As you can see, gold, silver and other commodities (like natural gas and coffee) have performed very well year to date, even while the major market averages have lagged. This is a stark change from 2013. And if this is the start or a new trend change, then commodity traders best get ready for action.
Now we’ve already covered the golden stock investing opportunities for 2014. So let’s look a little closer at trading the silver commodity this year…
Silver Commodity Trading Options For 2014:
Year to date, Silver has outperformed gold. This is nice to see for silver commodity traders as silver had been lagging into the end of 2013. Now if you’re looking to ride the silver bull a little higher, there are a couple of ways you can do it.
Here’s a list of silver commodity trading options for 2014:
Silver Metal ETFs: Of course you can buy silver coins online. But that doesn’t really appeal to the regular commodity traders. So instead let’s focus on the popular silver trading ETFs. SLV and AGQ are probably the most popular silver metal ETFs commodity traders can use to get silver exposure. They trade primarily on technical analysis though so you’ll want to be quick. And if this is truly a major bearish to bullish reversal getting a good entry will require good trade execution.
Silver Miner ETF: If you want to lever your exposure to the silver commodity, then working on the metals miners can be an even better way to play the silver commodity trade. Usually these silver metals are levered to the physical metal and if you are counting on an increase in the price of silver this can be a great way to get trading exposure to this commodity. By focusing on the ETF, you also eliminate company specific risks (like mines collapsing or whatever). The most popular silver miner ETF is SIL. There are a few other smaller ETFs but SIL is definitely the most liquid.
Silver Miner Stocks: If you’re looking to dig deeper than just the sector, you can look through the individual silver mining stocks too. Some of the most well-known silver commodity miners are EXK and SLW. If you want to look deeper you can also compare silver stocks by looking at this silver industry stock screen. Silver miner stocks might currently be under-valued and are worth digging through if you’re hungry for commodity trading opportunities.
Hopefully these options will help you find the best way to trade the silver commodity in 2014, as well as any other precious metals that might catch your eye. So far 2014 is looking promising to silver commodity traders so let’s hope it keeps up!
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