Silver/Gold spread

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]
 
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 ?
 
Quote from SethArb:

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 ?

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?
 
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
 
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.....
Quote from SethArb:

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 ?
 
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.
Quote from gkishot:

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?
 
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.
 
Back
Top