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EC SD | Congrats! You have an enviable position...
No one has a crystal ball to know if silver will continue soaring higher, or collapse back to $30 or less. If you have a zero-basis position, you are assured to avoid a loss if it collapses, and you are still in the game if it continues to soar. It is a risk-reduction strategy to avoid large risks of a concentrated silver position. I would keep any single position like that to below 15% of liquid assets.
Putting the money into CDs, is fine if your risk tolerance is basically zero (FDIC insured). Otherwise take some tiny risk, and move up to better returns in investment grade corporate bonds. Hundreds to choose from. Some of my favorites are: BIPH, XELLL, SREA, CMSC These are exchange traded, so they trade like stocks, but have lower risk. Currently these are paying from mid 6s to mid 7s interest and don't expire for decades. If interest rates fall, the CD rates will also, but these just keep paying out a fixed income stream regardless of the rates. If rates fall, the prices of the bonds will almost certainly rise, so you have an opportunity for capital gain as well as the interest. Combined, you could get over 10% total returns on some of these.
If your risk tolerance is higher, buy some stock ETFs too. Index funds like VOO are wildly popular, but there are a thousand other choices too. | |
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Silver chart help
