Guavaxf3006
05-16

$ProShares Ultra Silver(AGQ)$ 

An anomaly is being seen from last night's trading. Whereas we all know gold and silver prices fell along with most stock counters, what we are seeing is AGQ fell out of proportion to the fall in Silver prices. 

AGQ is now at $116.00 plus. And Silver is around $77.00 an ounce. but the last time AGQ was at this level, Silver was below $60. 

Hmmn.....

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  • Ah_Meng
    ·08:32
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    You can’t compare the two timeframe. AGQ is daily compute, meaning it resets itself every day. When the price of silver rises, it doubles itself, obviously the same applies for the drop. However, if you reset daily, it changes the logic. If you have stronger down days than up days, we will end up having a much lower AGQ price in a long run. So, it all depends on the number of up days vs down days and strength of up vs down days. This is something that you have to bear in mind when going for leveraged bets like AGQ. It is not simply leveraging that moves along with the silver price. That is the misconception many market participants have. Last point, might be obvious but all the same to emphasise, AGQ is good for catching the up-moves of silver, but it is not something to keep for the long term if fluctuations of silver prices are involved. Even in an uptrend, it’s possible we only get a little upside or even incur a loss at the end of the day!
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  • Ah_Meng
    ·08:59
    I have AGQ for sometime now, so I know the strange feeling… but this is something we have to accept if we are holding rather than trading… my better bets are in the gold and silver miners and even better, royalties… they capture the upsides nicely, as long as the uptrend is intact, or the price of silver or gold stays stagnant but at a higher price than the previous years, this would translate to a higher selling price for these royalties. With higher profit margins, obviously the share price would move up. Do consider those royalties for the long haul if that is what the interest lies. Just for transparency sake, I have substantial holdings in $Wheaton Precious Metals(WPM)$. I also have a little interest in $Royal(RGLD)$ and $Osisko Gold Royalties(OR)$.
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  • miracles168
    ·05-18
    I think there is time decay ..
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