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O/T How Gold & Silver Markets Work The BIG Picture

Posted: Tue Sep 01, 2020 12:14 am
by morganman
So some here understand the commodity markets fairly well, while
others have little clue as to the makeup and workings of a contract.
I will attempt a simple explanation-- LOL

All commodities including Financial mkts and curriencies, some 50 +
mkts, rely on Commercial interests, banks, processors, funds, large & small
speculators to Buy & Sell the various contracts depending on need or greed
Long position or short the mkt, which make the market action up or down

For instance: Gold is a 100 oz per contract so a $1 move is $100
At $2000 per oz a contract of 100 oz values $ 200,000
The cost/margin to trade 1 contract is roughly $16,000 so
your leveraged up the ass,which makes huge dollars or
loses huge dollars depending if your in right direction not.
Stop loss orders are extremely important to save your butt
when mkt moves against your position.

Silver = 5,000 oz contract - $1 move = $5,000
At $28 silver a contract values $140,000
Cost to trade roughly $10k Leverage is friend or
foe when trading any commodity or stock if on
a margin acct
Recently silver traded from about $16 down to $12
$20,000 loss per contract & now back to $28,
A $16 gain or $80,000 per contract
Longs made a fortune while shorts really got
clobered

Crude = 1,000 barrel contract, so $1 = $1,000
At $42 barrel a contract values $42,000
Recently oil dropped from $65 to O, first time
in history due to stroage shortages etc
So from $65 to O= $65,000 loss per contract,
then back now to $42 = $107,000 per contract
volatility within say 6-8 months Crazy
I was fortunate to own contracts at $8 barrel
and offload at $40, best trade of my lifetime

Anyway silver has major resistance hurtle at $30 and
major support at $25. Looking fo very choppy trading
to see if gold can surpass and hold 2k

Re: O/T How Gold & Silver Markets Work The BIG Picture

Posted: Tue Sep 01, 2020 12:18 am
by Longstrider
Amazing. I'm trying to understand. It's slowly sinking in. Thanks.🐍

Re: O/T How Gold & Silver Markets Work The BIG Picture

Posted: Tue Sep 01, 2020 12:45 am
by crabscrape
Longstrider, go figure out the Riddle John has for you!!

Scott. I believe in buying Gold. However. the government is not going to let you make no more then they want you too. Not unless you can hide it. How do you do it?

Re: O/T How Gold & Silver Markets Work The BIG Picture

Posted: Tue Sep 01, 2020 5:13 pm
by morganman
Crabescape; Many denominations of gold & silver bullion are exempt
from IRS reporting when both buying and selling
The 1933 gold confiscation act will not likely ever become
a issue again= we hope?

Websites and dealers can best show potential buyers of
bullion products which are reportable & which are not

Calif Numismatic investments = www.golddealer.com is
a excellant website for all matters concerning bullion
products, including daily Buy/Sell of each product
CNI almost 40 yrs in business with great reputation

Re: O/T How Gold & Silver Markets Work The BIG Picture

Posted: Tue Sep 01, 2020 5:16 pm
by VamHelsing
I expected strong resistance for silver at $30. If it breaks through I can see $40. IMO.

Re: O/T How Gold & Silver Markets Work The BIG Picture

Posted: Wed Sep 02, 2020 1:33 am
by morganman
Consider this action !!!! Silver at $50 in 1980 adjusted for inflation
makes $600 per oz today

many ways to see why its terribly undervalued

One if not the best commodity play today IMHO

Not saying its going to $600 but $100 plus seems to make
some sense. Im in lets go LOL