Silver/Gold spread

Discussion in 'Metal Futures' started by andrasnm, Mar 2, 2006.

  1. I just bought some......

    Date Buy Sell Diff Chg
    02/24/06 9.705 558.800 -549.095 -9.852
    02/23/06 9.457 548.700 -539.243 5.004
    02/22/06 9.553 553.800 -544.247 .019
    02/21/06 9.534 553.800 -544.266 -1.874
    02/17/06 9.408 551.800 -542.392 -5.845
    NOTE: Diff = [Buy Close] - [Sell Close]
     
  2. I can see silver outperforming gold recently
    as the ratio has dropped in the last year
    from the mid 60's - mid 50's

    but have trouble understanding your notes
    on what day you bought and in what percentage
    do you buy or sell the spread with the least risk ?
     
  3. SethArb,

    I have question for you - are the spreads quoted separately ( as separate symbol) by a broker or one has actually to buy one symbol & sell another one?
    How are they charted?
    Which broker is the best to trade the spreads?
     
  4. I am sure someone is making a market on the spread but in reality if I were to play it for a
    swing trade I would have to leg into each side of it
    and decide what % I wanted in each end to keep
    it hedged or unwind part of it as the spread moved

    www.goldmoney.com/en/commentary.php
    had a chart of it recently on the internet

    you can also get an idea of the swings of the spread from looking at long term charts
    of the components at kitco's site
     
  5. The 'notes' are just the spread recent metrics for the mini contract.
    from
    http://www.britefutures.com/BFCharts/BFSpreadChart.asp

    (type the minit silver and mini gold)
    As I was trying to post the chart - I could not as it expires.....
     
  6. Most liquid spread markets there is a broker to make the market. gold and silver is very liquid and traded big by big savvy money players (not the mini contracts thou) due to the spread traders like to go out a few month more and not bother with conversion alas mini contracts. I trade with IB since I have an IRA to trade and I find all other brokers limp in terms of handling IRA money for futures.
    Most pit traded brokers will handle your spread business, like Man, IRA Epstein, Alaron etc etc (best to find a decent guy by referral who actually knows his shit and don't get stuck with the new dingleberry who can't help you at all.)
    I find IB moving into the pit business a BLESSING !!!! They will get a lot of IRA players.
     
  7. tomcole

    tomcole

    If you want to be clever, try trading gold v silver spreads, in effect staying metal neutral, and borrowing dollars from one and lending to the other market.

    Pretty cool, but your broker may need an education on how to margin you.