an alternate way to hedge against a drop in silver
Posted: Sat Jan 01, 2011 3:44 am
I stumbled across this article while scanning stocks; HRT is a stock I owned in the past, but not presently; it is profitable, pays a small div, and is apparently inversely tied to the price of silver, due to the high % of silver content in their medical device products.
http://seekingalpha.com/article/239892- ... urce=yahoo
I am not pushing HRT, a risky micro-cap; it is just an example. I bet there are a lot of other businesses who's fortune is inversely tied to the price of silver, due to the high percent of silver they require. If you had a lot tied up in silver, but were worried about a potential correction/crash/dip in silver price, one way to hedge that silver holding might be to buy and hold a company whose fortune would rise if silver dropped. I have never had any luck with puts or inverse ETFs. Holding a profitable company's stock would seem to me a much "safer" way to hedge, if you wanted a hedge. If anyone else knows of other companies that would move inversely to the price of silver, I would be interested in knowing.
http://seekingalpha.com/article/239892- ... urce=yahoo
I am not pushing HRT, a risky micro-cap; it is just an example. I bet there are a lot of other businesses who's fortune is inversely tied to the price of silver, due to the high percent of silver they require. If you had a lot tied up in silver, but were worried about a potential correction/crash/dip in silver price, one way to hedge that silver holding might be to buy and hold a company whose fortune would rise if silver dropped. I have never had any luck with puts or inverse ETFs. Holding a profitable company's stock would seem to me a much "safer" way to hedge, if you wanted a hedge. If anyone else knows of other companies that would move inversely to the price of silver, I would be interested in knowing.