I do not know how the margins are set up, I have an e-mail in to a broker asking what they are using. The last change I saw was last week,
cbot.com
but my numbers do not seem to add up. Still that increase above was the third one in two weeks, I believe.
I don't follow the COT as closely as you, I recall you always did. I can't get my arms around the concept because of the delay in reporting. I look at the charts/reports and I see what happened a week ago. I guess I have to learn how that could help going forward.
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<I am at that point where I still am bullish the metal, but have no idea on how to play it.>
Well fortunately or unfortunately I'm playing it (and Gold) all over the board. Small miners like TRE, Large ones like ABX, Futures contracts......Futures is my bread and butter here. The increase in the miners pales compared to even a buy and hold in the Futures.
One thing you touch on reminds me of something I read.....somewhere, I may have a link. Someone postured that an Exchange stopped trade in Silver Futures (except for liquidation) back around 1980. For about three weeks, I guess.
That would be a crusher for Longs. Specs would have to bail out immediately, I would think.
Going back to the miners, the issue there is who is hedging overmuch? Now Barrick is supposed to be scaling back on hedging, TRE data implies they do not hedge. The only reason I own those two.
But a Silver (or Gold) producer who is selling future production at today's prices (or worse, yesterday's and last year's and so forth) not only won't have the earnings that an investor expects but may even struggle with a loss. Consider that costs of production rise but the "product" was sold at a price last seen during February. So the miners bother me a bit over this issue.
I was unfamiliar with CEF until I came to this thread, or perhaps one of the other Silver threads. I should know it, I set up accounts in Montreal when I was there several years ago, but it's never "crossed my desk", so to speak.
I'm leaving on holiday in a few days, I'm going to try to get information to read on the plane. Have any links I should read?
When you say "Futures clearing", what are you referring to, taking delivery? |
