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Is this investment stradegy insane?
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<p>[QUOTE="buyingsilvers, post: 1309798, member: 18821"]Well, nothing in life is ever absolutely good or bad. Short positions can be a useful tool. I've thought about entering a smaller long term short position in the metals to help offset the larger physical position that I do have.This way, if the price of metals get slammed, at least the value of the short increases, and acts as a cushion against the loss in value of the metals. Of course, this will also reduce the unrealized gain when metals increase.</p><p><br /></p><p>the strategy could go something like: as the price of silver increases by 10%, increase the short position by X amount, repeat every increase. Then when the price of silver plummets by 10%, decrease the short position by X amount, and repeat every decrease. As you're liquidating the short position when the price of the metals fall, you could use that money to increase physical holdings.[/QUOTE]</p><p><br /></p>
[QUOTE="buyingsilvers, post: 1309798, member: 18821"]Well, nothing in life is ever absolutely good or bad. Short positions can be a useful tool. I've thought about entering a smaller long term short position in the metals to help offset the larger physical position that I do have.This way, if the price of metals get slammed, at least the value of the short increases, and acts as a cushion against the loss in value of the metals. Of course, this will also reduce the unrealized gain when metals increase. the strategy could go something like: as the price of silver increases by 10%, increase the short position by X amount, repeat every increase. Then when the price of silver plummets by 10%, decrease the short position by X amount, and repeat every decrease. As you're liquidating the short position when the price of the metals fall, you could use that money to increase physical holdings.[/QUOTE]
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