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2011 GOLD high $1,500.00, SILVER high $24.00
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<p>[QUOTE="desertgem, post: 1072130, member: 15199"]Since this is Bullion investing, and since I am out of PM trades, let me show you how some risk might be mitigated. Lets say silver was 29 tomorrow morning. Shares of SLV would be approx. 28.40 a share. If I was worried the market would go down and I wanted to preserve some wealth, and I figure something probably will break by April, I could buy some april 29 $ put options @ 2.38 currently. That is less than 10%. So if silver stays above 29, I reap the rewards, but lose the 2.38. If it goes below 29, my puts increase in value, so I don't lose much. The bad case is if it sits right at 29 until april expiration, but the most you would have lost is $238, and sleep better at night. Numbers may very a little as I didn't want to go too deep. This is the "Buying protection" CNBC people talk about.</p><p><br /></p><p>Forgot to say , this is for each 100 ounces protected.[/QUOTE]</p><p><br /></p>
[QUOTE="desertgem, post: 1072130, member: 15199"]Since this is Bullion investing, and since I am out of PM trades, let me show you how some risk might be mitigated. Lets say silver was 29 tomorrow morning. Shares of SLV would be approx. 28.40 a share. If I was worried the market would go down and I wanted to preserve some wealth, and I figure something probably will break by April, I could buy some april 29 $ put options @ 2.38 currently. That is less than 10%. So if silver stays above 29, I reap the rewards, but lose the 2.38. If it goes below 29, my puts increase in value, so I don't lose much. The bad case is if it sits right at 29 until april expiration, but the most you would have lost is $238, and sleep better at night. Numbers may very a little as I didn't want to go too deep. This is the "Buying protection" CNBC people talk about. Forgot to say , this is for each 100 ounces protected.[/QUOTE]
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