$Silvercorp Metals Inc(SVM)$ Today, I am doing something slightly different. Yes, I am sharing Silver related investment... again. More importantly, I want to emphasise that not all silver investments or precious metals investments are the same. 

I am sure many people already heard of this. It definitely appears trivial but I will share it anyway. In middle chart is something that I hope we can take something away. What is it about? It is a 3 month chart that illustrates the performance of silver futures, with $Silvercorp Metals Inc(SVM)$ and $ProShares Ultra Silver(AGQ)$ 

It is very simple. As their absolute prices are very different, I have normalised their price movements so that they can be placed on the same chart for comparison purposes. As we can see clearly from the chart (no amplification here- none needed), SVM outperforms both silver and AGQ over these recent 3 months window. Silver also performs better than AGQ. It might be surprising to find out that silver performs better than AGQ, an index created for the sole purpose of doubling the price movements of silver. 

Probably not that surprising that silver futures in early March is higher than now, sitting between $82-89, while the price of silver hovers around $72-78, a $10 difference. With leveraged, AGQ likely underperformed. If you have read one of my recent articles, you should probably guess the danger of these daily rebalanced leveraged ETF instruments. They are everywhere, like AGQ for silver, DGP for gold, MSTZ and MSTX for Strategy. You can the idea. These daily balancing, even if the principal share price fluctuates about the same point, investors will lose money 💰. Yes, this is Maths... 

If we revisit the above point again, SVM still very much outperforms silver. While silver price drops $10 or more during this period, SVM share price got stronger and stronger. The reason is simple. Even when silver drops $10 over this time, it's still a lot higher than last year. So, SVM, a miner, naturally makes a lot more money now given the selling price for silver is a lot higher than last year. That is my whole point of this article. Bet the right horse 🐴 for not all silver investments are the same. 

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