Here is a chart of AGQ, the leveraged silver ETF. You could have easily bought AGQ in July for $16-$17, and the stock was selling for $25 on September 3, 2013. If you bought the stock for $16.50 in July, you could have sold it on September 3 for a 50% profit. Since I know the Yahoo Finance link for AGQ will not show this chart too long due to daily updates, I have shown a Paint snapshot of the September 2013 situation below. Double-click the chart below to see a bigger image.
Now, how should I have known that July 2013 was a valid bottom for silver? First, silver itself was selling for around $20 at the time, and that is the break even price for most miners. Exactly how high silver goes in the future is a mute point when silver is at the bottom. It was due for a bounce off the bottom because silver demand is still present.
Secondly, the London Bullion Market website has what is known as a Gold Forwards (GOFO) page where it lists gold delivery prices. The GOFO number was negative for several days in the first half of July, and this is a sign of a gold bottom. Since gold and silver move together, the GOFO negative value was a clue that both gold and silver would probably be moving up in price, and that is exactly what happened in August and September.
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