Gold and silver market (blue horse shoe message)

Discussion in 'Metal Futures' started by FireWalker, Sep 29, 2010.

  1. 1. Decide how much you can afford to lose.
    2. Invest only half that amount in either gold or silver futures contracts.
    3. 50% margin only.
    4. Know the other side of your contract. Preferably a mining company selling production forward (Delivery date of Sept or Dec of next year or as researched). You don't want a speculator on the other side of your contract.
    5. When rolling over contracts: Buy the forward contract. Verify that it is in your account. Sell the expiring.
    6. Sell at least 75% at or near $8,000/ounce.

    Market makers are aware. A rock-solid base is forming. The paper shorts are going to have a massive problem delivering.

    FYI, when the Federal Reserve accepts T-bonds from the Treasury, what is that journal entry? IE. What is the offsetting asset or liability when the Fed books that asset? FASB has been informed.
  2. So basically if we follow all those rules, that means we need to have at least $110k that we can "afford to lose", then we use half that(50% margin like you said) and we can buy 1 single contract with that $55k (or 65k for gold).

    I dont know many people that can "afford to lose" $100k. I mean...thats a pretty nice night out in Vegas for that kind of money. :p
  3. How do you know who is on the other side of your futures contract? Why would it matter?

  4. businessstaxes

    businessstaxes Guest

    less than 5% actually delivered.

    mostly likely another speculator.

  5. You could do a mini Gold or Silver.
  6. Of course, this isn't much different than holding the physical, but....

    1. Pyramid in once you have some profits on the table (~$2,000/ounce).
    2. Taking down the naked shorts is gratifying. Let them cover at $8,000.
  7. Tsing Tao

    Tsing Tao

    gold just took a long walk off a short pier.
  8. Measured move to 1500? Buy the pull backs.
  9. And which contracts allow you to do that, please tell me.
  10. I don't know. Talk to your broker.

    In any case, it probably won't be relevant except to larger traders.
    #10     Nov 7, 2010