BUY - Silver (ZSIKCB)
*** GENERAL AVICE ONLY***
Trade Date: 04/12/2023
Description: Silver Mini Warrants (ZSIKCB) offer leveraged exposure to Silver Futures. These warrants have a delta of 0.1 to the silver price, which means the warrants move 1c for every 10c that the silver price moves.
Recommendation
Buy Silver Mini Warrants (ZSIKCB)
Entry price: $1.06 (Dec Silver Futures circa $26)
Target Price: $1.26 (Dec Silver Futures circa $28, +18.8%)
Stop Loss: 96c (Dec Silver Futures circa $25, -9.4%) Use Trailing stop if Silver rises after entry
Rationale:
Precious metals have had a great run of late, buoyed by some weakness in the DXY. Gold especially, has broken out to new highs this morning. Our preferred play in the space is Silver, thanks to still being used industrially. The easiest way to get direct exposure is buying Silver Mini Warrants. This trade is looking for the Silver price to play catch up to Gold and rise up to the $28 level, where it previously traded in May 2021
Disclaimer: The recommendation given is general advice only. It does not take into account your personal objectives, financial situation, or specific needs. This information should not be your sole resource when making such decisions. We strongly recommend you to seek the advice of financial, taxation, and legal professionals before finalising any investment decisions.