When you recommend going long in a speculative position do you recommend doing it with GLD and SLV? Do you recommend leveraging such as buying contracts or margin? Should I be margining SLV or buying gold contracts? I am constantly reading about gold and silver prices dropping after margin requirements are changed. I understand a great deal more money can be made leveraging when it is certain that the bull will run. Please let me know what I should obtain and where I should obtain it.
We cannot recommend margin, nor can we advise against it - it's not a matter of our suggestion but rather a matter of your risk tolerance, portfolio size, experience in trading, etc. The point is that the answer would be different for each Subscriber and we cannot make one single universal recommendation here. You will find more information on our approach in our essay on gold and silver portfolio structuring.
However, there's a simple rule that might be useful here. If you're a beginning investor, then most probably, leverage is not a good idea, especially since you plan to trade in silver, known to be very volatile. GLD and SLV ETFs are OK as trading vehicles, but we don't recommend them as a way to buy gold/silver for the long term.
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