> anglo gold was up 7.5 %
> that's pretty quick, no ?
Yes, I noticed the same thing, and had the following
thought which I had posted in another subject
----------------------------------------------------
I have been looking at the price relationship between ASA and AU and thinking there is an arbitrage opportunity. (ASA is 30% AU, high correlation)
During 1999, AU averaged $US23, ASA $ $us18, ratio=1.3
When gold peaked on September 28th, AU was "too expensive"
AU was $us34.50, ASA was $21.625, ratio=1.6
I'm looking at a big rise in AU today $us28.625, with ASA sitting at $us18.875, ratio=1.52. AU looks "too expensive" again.
Wonder if I should short 200 AU, and go long 300 ASA as insurance ? If one had done that back on September 28, one would have seen a $10 drop in AU, generating a $2000 profit, while ASA droped $3 generating a $900 loss - net profit $1100 with very low risk. Just an idea ....... |
