Hi all, How do I short the price of silver as an Australian investor? I would prefer an asx listed instrument/derivative (like the opposite of etpmag)? Is silver futures an option? If so is anyone here experienced in this? I don't want to open a comex account. (not even sure if I can being Aussie) Thanks.
sorry but l have to ask.... Unless you are JPM, why the hell would you want to do that? Are you Jamie Dimon?
Ponzi, CFD is one way, though my preferred is simply shorting stocks. You'd need to open an account with something like Macquarie Prime & short something like LGL - while I believe there is more drop to come, the shorts should have been initiated 2 weeks ago.
Price goes up, price goes down - why not have it both ways. Stack silver long term as a bull and short it when overbought in the short term. Thanks BB, I know there are silver shorts on the NYSE so I was hoping the asx was similar? Alas it seems not. I steer well clear of cfd's and market makers so that is off the table.
You can as an Australian: trading on COMEX can be done easily through an online broker such as Interactive Brokers or the like. Long/short futures, options, whatever you want basically (including other commodities - gold, platinum, copper, maybe pork bellies??) That being said, the most widely traded SI contract (futures) is for 5,000 oz - currently a face value of about US$150,000 on a VERY volatile commodity. It's easy to be wiped out on such large positions held on margin. Just one contract held over the 22nd/23rd of this month would have lost about US$50,000 in value in a matter of hours!
2 weeks ago - agreed. Any drop now would not be substantial enough to warrant a short IMO. Preparing for next time......
Hows about you open a Goldmoney account? You buy your silver on the dips (spot plus 4.19% commission) and you sell at a peak online (selling is free) into your bank account. Storage fees are charged by the month for the silver you bought, roughly an ounce of silver each month for about $90,000 worth of stored silver. Not exactly shorting silver, but it is a quick way of taking advantage of the price volatility by trading virtual silver for real bucks.
I think this is a fantastic tool. Buying Physical has a whole lot more hurdles than paper. If you believe that there is going to be a short term silver drop, but am long term bullish on silver why would you not attempt to short paper. If you get it right, the profits you make from the short let's you buy more ounces once you cover your short position. I have never bothered spending the time to go into shorting anything. But if I had the capital ipand time I would certainly entertain it. Why could you not short ETPMAG? Anyone ever done this? Does Stella still visit us at SS?
Open a retail forex broker account. Most offer XAUUSD and XAGUSD contracts. Short the hell away. If you want to do it with AUD. Just short the XAGUSD and open a corresponding long position on the AUDUSD. Probably the simplest way to do it. Just beware of the leverage and size your position accordingly. Edit. (long position on the AUD, not short) e.g. 1 lot of XAGUSD is 5000 oz, or around $150,000. If you want to short exposure of $10,500 worth or around 350 ounces. Short sell 0.07 lots of XAGUSD. and buy 0.105 lots of AUDUSD. That way if the silver in USD rises, but falls in AUD (i.e. the AUD stengthens) then the gain you make on the AUDUSD trade will be greater than the loss on your XAGUSD trade. One of the trades will typically be a losing trade as you are long the USD on the XAG, but short the USD on the AUD trade. But the net result will essentially be an XAGAUD trade short for 350oz. Not doing this however you have 2 trades with an approx value of 10.5k each or 21k total and you will need enough margin to cover both of these positions. at 400:1, you will need $52.50 to cover both. I feel too many people get hung up on leverage so often it really is irrelevant if you size your positions right. What you will need is a predetermined stop loss set at how much you are willing to risk on the deal and how much you are prepared to let it go against you before you pull up stumps and close out the deal.
Ok mate there are Silver CFD's and than there are Futures contracts but be carefull when using levergae cos it is liked a double edge sword. Keep your stops in place and NEVER EVER EVER TRADE WITHOUT STOPS. Do all your charting anaylis on SI-SPOTV chart. Look for retisiant point in the market like the one that is happening now where it tried to go through the 50% cycle high to low
CFD's is an easy way to do it. There is a 500oz option on IG Markets. If you do decide to go that way, remember to put a stop in place. Margin required on 500 ounces is around $728.
Thanks euphoria! this actually sound like a viable option for shorting, even in us dollars is fine. Kinda feels like sleeping with the enemy opening a forex account Can you recommend a forex provider? I trade with comsec and I dont think they offer silver/us$ pairs. Agreed, leverage is fine if you understand the risk and can back up the losses. I trade options and they are actually not all that bad despite the reputation of leverage. As long as you know what you are prepared to loose and have an exit plan then away you go. (and an exit plan b if you miss a stop)
I use commesc also, but no good for forex. Forex brokers I can reccomend are Go markets, have been with them for almost 12 months and no hassels, tight spreads. Recently opened an account with pepperstone (due to tighter spreads, but is commission based, works out better for me) They seem ok but too early to tell. Both are asic regulated and are aussie based which is why I would go with one of them if you were so inclined. PM me if you want some more detailed info. Hope this helps.
