Silver Update 11/7/11 - ETF - Epic Trading Failure

[BrotherJohnF]

@assilvertried7x You may be correct. This is something to think about

[aljiowa1]

This video is completely false and either the person doesn't understand what he is saying, or he is purposefully deceiving. ANY investment that goes up 20% and then down 20% will not be the same price after, this is the most basic math possible. The decay in leveraged ETF's has to do with frequent trading and re-balancing. This was a complete waste of 20 minutes.

[SIERRAHPBT]

@assilvertried7x I did not mean that literally. maybe he see's the future where bankers are hanging from lamp posts in New york when the masses finaly figure out how the banksters have been screwing them?

All I am saying is something is going on.

[SuperEye2eye]

could not agree any more...keep playing the game and someone is going to get hurt....and it always the little guy! The fraud is rampant beyond imagination.



[SIERRAHPBT]

@assilvertried7x Yes I know. Maybe Gensler found God? who knows. But with out him we would not have the investigation or limits.

[blazefury2010]

I think most people realize the 2x and 3x ETFs are huge scams with massive decay (yet they still day trade them thinking they're smart enough to make money on them). What I'm waiting for is most people to realize SLV is also a scam, even though it doesn't have decay. I can't wait for that ETF to collapse. Same with GLD.

[solojam]

bankers must be drooling listening to those fraud tactics!

[lynnybee888]

these videos are super ! i especially enjoy referencing articles & the reading of portions of these articles . i just wish these videos were put out daily !! thank you for your efforts, what great videos for education.  Keep on keeping on; i wish i'd known about this stuff years ago.

[YoboWarrior]

silver to $100 by year end? puahahahahahahaahahahahahahaha­hahahahah

[silveristhefuture]

Going long USLV on a year when silver goes UP will still make you significantly more profit than going long SLV (non leveraged) or long AGQ

So basically, the decay only matters if you hold for a long time and the price stays flat that whole time.

Although if you are trading leveraged ETFs you should be in and out multiple times monthly anyways.

[kcrone1]

Oil UP big, Silver down??? Okay???

[ShoppingIdiot]

left the whole advertisement on..but, turned off the sound. Saw that movie ad before. :)



[cleburne61]

Hey Brother John, there are new triple silver ETF's now....for your consideration....the 3X bull is USLV, and the 3X bear is DSLV. Thought you'd wanna know about that. Have a great day!

[Alexiscom1]

Thanks for the update. I like to follow oil price to measure consumer inflation 96.37 USD as we speak. Real inflation is not reflected in silver price yet, when it will I will begin selling. 

[Alexiscom1]

@garryjlindsay AGQ is much more profitable on puts, If you are brave enough to short silver, I am not. Calls can be hold 1 week max.

[thesilverjournal]

Yes, there is a lot of risk but the reward of leveraging with paper is so huge that it is definitely worth betting some on. I agree that a core physical position is a must. But silver's going to min. $1,000, so a leverage bet will have an insane pay off. John's warnings, though, are definitely warranted because when the wheels fall off the markets, you will lose all of your paper silver.

[dufas47]

A lot more little fish who think they're big fish are about to get cleaned, boned and made into chowder.

[Leonpaidang1]

I don't like ETF and it's various potential fraud due to conflict of interests. However, decay is caused by the daily %calculations demo'ed hypothesis doesn't convince me logically, please explain a bit more if possible, anything to do with fees, underlying assets adjustment or speculation by traders etc?

Thanks

[ShillBasher]

Hi, John.

I still have slightly mixed feelings regarding someone exposing fraud within the system and then explaining how they effectively take part in that same fraud. It's all very interesting stuff but it also seems very slighty bi-polar/ hypocritical to me.

I don't blame anyone for wanting to make money and I respect their knowledge, which enables them to play and win in this particular game, but I just struggle a little with the contradiction in ethics. Sorry, just being honest here.

[charlesfuchs]

$20 ... sell

[vambo13257]

@charlesfuchs go back where you came from!

[MathewTitus]

Most people simply DON'T do the Math... even the ones who know how.

Everyone ASSUMES 20 percent UP - equals 20 percent DOWN. But it's just the "heads I win - tails you lose" trick - in disguise!

Great vid Bro John! =)

[greenknightist]

wow... what a mind blower .great video

[andreaspetersson]

sounds like your computer has a dust/heat problem.

[BrotherJohnF]

@andreaspetersson It's a laptop with a 1 gig video card and the screencap software makes it go crazy

[elysianfury]

19:44

[TheRambonator]

You play Everquest 2? Every play HoN? If so send me a message and let's play sometime :D

[mtube620]

is there built in decay in silver paper long like agq, uslv and HZU?

[silvermaniamania1]

@mtube620 YES!!!

[BrotherJohnF]

@mtube620 AGQ for sure. I don't know about the others

[Ddvex]

@BrotherJohnF

AGQ and ZSL use leverage to follow the multiples of the price in of silver. That leverage is obtained at a financial cost. That is the reason that even if the price of silver stays flat over time, both ZSL and AGQ will be at a loss compared to the silver price.

[rush7]

@mtube620 Since USLV is 3x it decays faster than AGQ. Any levered fund that rebalances periodically (in this case daily) does decay. I think this is how it works.... Say silver is at $50, goes up 3% one day, and returns to the same $50 level the next day--a 2.913% drop. So USLV goes up 9% the first day and drops 8.738% the next day (or said differently, retains 91.26% of its value from the day before). 1.09*.9126 = .9948 therefore USLV lost 0.52% despite silver regaining its original value.

[connectingdots1]

Hey bro,,,HEADS UP!!...don't anything from Kingworldnews, eric king as contacted Youtube and had they give me a copyright infringement because I made a video with music only and showed only the picture of Royal Canadian mint in Ottawa,which btw he probably got himself from the internet. It seems they had a interview w/ a mint manager and he'd said how the mint was having hard getting silver, but only showed picture of mint and part of his story from coinworld found on the net. beware of his acts

[scottj719]

I've been both intrigued by leveraged ETF returns but also confused by what I've read about their potential to decay as you say. The returns on X2 short Dow, Russell and Financials over this last quarter and according to CNN money was a crazy 40% give or take. The X3 short Russell was even crazier at 60% or so! I think possibly the best use for these is when the market is going down in a big way and to not stay in forever.

[stuzapusa]

WoW!!! peace Bro..... Good.

[jodzinoz123]

Happy to see the ads BJF. Hope it helps compensate in some small way your hard work.

[TOUGHCHOICE]

@ brother john

your opinion on phys and pslv and cef....do you consider these as to be backed by physical

thanks dan

[BrotherJohnF]

@TOUGHCHOICE Those are not the same type of ETF as far as decay goes. Not sure why

[tradergee1]

@BrotherJohnF Simply because those aren't leveraged like AGQ is.

[EddieSweat]

20% down the same as 20% up ... LOL

Epic warped conclusion.

[aboutsoul19]

Thank you John.+

[sw911iz112]

If we see a big market crash isn't it better to own paper currency than PM because they tank in price while currency appreciate.

[SIERRAHPBT]

@sw911iz112 who says it will? The FED will have to QE here soon. I actually think what will happen is the dollar is going from its present USD index of 77.08 to the 90's. BUT the precious metals are going to rise with a strengthening dollar. Usually when the dollar strenghtens the PM's go down. but not this time. The dollar strengthening will be short lived tho.

[robertplant634]

@sw911iz112 depends on WHY the market crashes.

[robertplant634]

Bart Chilton has the best hair in the game!

[greatwf]

¡Great!©



[SIERRAHPBT]

Ted Butler basicaly said the same thing on Saturday. CME Group and JPM delayed the CFTC and then later they accuse Gensler of not doing his job to stop MF Global. JPM is the biggest snake in the world. I have been skepticle of the road to roota theory by Bix Weir. The more time passes the more the road to roota theory looks legit. Prepare. folks If you do not have your phyzz you are CRAZY. Thanks again John, Your time and expertise is very much appreciated.

[renegado100]

first !!

[mrspiggylovespiggys]

Good Job Brother!!!