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Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA -- Ignore unavailable to you. Want to Upgrade?

To: Square_Dealings who wrote (9536)	11/30/2001 2:19:19 PM
From: J.T.	Respond to of 19219

I agree. When gold was at $280 an ounce in early 1979, the price of silver was near $6.00. The gold silver ratio was 46-1 which was considered high at that time. The peak average ratio dropped to 21-1 when gold was say $800 smacks and silver $38 on average... With todays ratio now at a robust 66-1 ... you could do a GSR Trade and go long the silver futures and short the gold futures on the same monthly contract 9 - 18 months out and pocket the difference on the spread... Can be done on margin with little money down. Could have made over 4,000% on this hedge trade alone on margin with limited downside risk had you bought on January of 79 and sold in January of 80. Best Regards, J.T.