Haha, I might buy stocks in Pharmecuticals - They'll have a few billion in Asprin deals to cure that economic headache! Back up the trucks, its gonna be good for loading... or perhaps some more gold
Well I'm fairly new to all PM's, even though i know I'm long i used to doubt myself when the price dropped & others were saying its a good buy opportunity which i saw the logic too but the niggling in the back of my head continued. Now i feel a lot more secure in my decisions & long position & I'm not concerned about the drops, even though I keep an eye on whats going on in the main stream. I'm actually holding out for a drop down to anything around the mid to high 20's which some are saying could be the case to buy a lot more too add to my core position. Come what may i will live with my decisions & I'll do what i think best as things unfold & begrudge no one else with their wins or losses or choices. As a side note general observation & that's all it is, people in general seem a lot more happy hence friendly or forgiving when the prices are going up & the opposite as it go's down, humans, where a strange bunch. Sorry if this is not exactly on topic.
@stellaconcepts Trying to understand the whole trading thing (been avoiding it whole my life). What would you do in this situation to profit? I stalked your earlier posts and deduced: shorting it? Just trying to understand trading a bit.
@stellaconcepts About the hedging thing, consider the following scenario: I bought 1000 oz @ $30 I sold contract at 1000 oz @ $30 My goods are sold 500 oz. What happens now to the 500 oz shortage? If prices rise exponentially do I let the contract expire? If I do, what do I have to pay? If price drops I guess I just buy contract at market price to make up the shortage. Did I get that right?
yea its really not that simple to explain in a post... I dont trade options - so there is no expiry to consider. i might find the time to explain how i do it this weekend sometime.
Sorry, I am completely blind to trading, so I am asking things in the way I can understand it. What literally happens at contract close? Do you actually have to deliver physical? Or is it just paper moving? Before all this can happen, when you set up account do you actually purchase paper silver or deposit a sum in the account? Is this about protecting net position in the end? 1000 oz physical 1000 oz sold contract With spot movement affecting both holding oppositely?
@jpanggy Check out stellas youtube channel and look back through his history. you will get a very accurate impression of his trading and PM views from it. You also see the growth and mindset change in him if you watch a clip 1 month apart from the oldest. Its like a time lapse. It is interesting to watch, and if you are new to PM you will see yourself in the early conspiracy theory version, so after watching just morf to the later realistic version that (tries) not to bite at fools. Note this is not and ad just an observation of what may one day make a good biology documentry.
Generally the contract is either settled in cash, rolled over to a new contract for a future date. Not sure what happens if you elect to have physical delivered but you will obviously have to front the remaining $$ of the contract, (not just the margin) and (i think) have to have an approved depository account to have it transferred to/collected from.
Not trying to be lazy here, but audio and video normally takes too long for me, because I have to keep replaying it. Because I guess my listening skill is as good as my farting skills. So, normally I prefer reading, because I can do a word reference and search on google. Wikipedia helped heaps, reading this forum has helped heaps too. And even after watching the videos, I still don't understand a few things (cos I am as thick as my butt cheeks). So by throwing those questions, I will get better understanding when pointed the flaws or oversight of my logic. I am actually not in the conspiracy theory section, I have had enough experience in business to look past conspiracy theories. Manipulation of price? sure there are, but it is all for profit, not "new world order" manipulation.
I am not exactly in the conspiracy corner or the end game corner myself , " but " maket manipulation through take downs etc .. do happen in my view , there are experts who proclaim that all the exchanges are rigged , and i believe them to be correct , but we accept the market movement and choose to invest regardless of what is driving the market . Similar to horse racing and performance enhancing drugs , there will still be a horse crossing the line first for us to bet on . Investing with leverage ( long or short ) is very risky , the before mentioned manipulation " can " be a factor given the fundamentals can tell you one direction , but the market moves in another , make a lot or lose a lot . Might i suggest to really do your homework , perhaps try a trial account and do a few simulation plays and get comfortable with it . A point of interest for you if you are not aware , have a look at Bullionvault.com , there you can buy and sell physical quickly with little cost and no leverage and they give you vaults in Zurich , London and New York depending on your tax arrangements . Good luck and be careful
Thanks for the warning, but not looking to dive into trading. I dislike speculation a lot. I just want to know how hedging really works, because it is really useful for business. Several times in the past I have had my business near the red because of commodity movements, namely fuel(2008). So was looking at ways to keep business costs relatively flat. I am aware of price contracts, but my business was nowhere near that big to secure price contracts directly from fuel companies. However with the hedging from commodity markets, I am sure this can act as a substitute for my business. Will get into the simulation account asap. Thank you all so much for helping me understand commodity trading better. From where I stand, going short or going long on anything (commodity/PM/share) requires deep understanding and involves an element of speculation. Because at the end of the day you can't 100% predict the market movements. As a hedge though, it is a great tool.
might want to check out this jpanggy. http://www.mercatusenergy.com/blog/bid/34210/Fuel-Hedging-A-Competitive-Analysis
Back to the chart, silver in aud is $31.42 and looks like it may be breaking out to the downside for a bit. any view on the target of the move? I would guess it will bounce off the old high about $30.20 roughly. whether it then continues down after that i have no idea. edit and about $1350 on aud gold.
Thanks! I forgot, my family back home are morons that likes to gamble. Now I shall never reveal the way to hedge fuel for them. I rather they go in the red a bit than a highspeed suicide for my company. Millions of thanks, seriously dude. Can we implement +1 button from Google? So we don't waste a post just to +1 someone.
LOL - so earlier on he gave credance to the "conspiracy theories" and has since (in a matter of weeks/months) "grown" in his mindsight to be more "realistic" ?? WOW!! - A finer example of a DAMASCUS EXPERIENCE I have never come across ... :lol: You're a couple of cans short of a sixpack mate! :lol:
