How can physical gold holders hedge their losses and insure their investment against falling prices and sell-offs such as the one we experienced this past week? Kitco News' Daniela Cambone caught up with Rich Ilczyszyn of iiTrader to discuss gold's recent price movements and find out how iiTrader successfully hedged losses for their physical gold owning clients. In regard's to this week's carnage and crash, Ilczyszyn says the trade to the downside was very technical in nature. Once the gold market broke its 2-year low, "the gates opened". According to Ilczyszyn, a big concern for investors during the time immediately leading up to the sell-off was gold's lack of a response to stimuli that it should have presumably moved higher on, such as geopolitical risk, Eurozone worries, etc. Nevertheless, he believes that the uptrend has not been broken, and that instead on panicking out of gold, investors should hedge their portfolio risk. Providing some hindsight, Ilczyszyn says that while gold was trading above the 2-year low of $1520, iiTrader recommended what he calls a "chief insurance policy with options on futures" for its many clients who are physical gold holders; because they had some indication that if the gold market broke $1520 it would surely head further south, iiTrader advised physical gold holders to purchase "paper gold" futures options, specifically puts at $1480. Each put, which represents 100 ounces of gold, cost $450 per option at the time of purchase; when the gold market broke $1480, the options gained 1000% in just 24 hours. By utilizing puts in this manner, iiTrader was able to effectively hedge clients' risk against downside price movements. According to Ilczyszyn, this is the only effective way for physical gold holders to hedge against losses without having to sell any physical, and is the only form of insurance in an environment such as this, when prices are too volatile to make trades and there's no telling if the market will continue to head lower. He adds that hedging in this manner is what the big corporations, institutional investors and market makers all do, and that options/ futures markets are designed to allow big commodities holders to hedge their losses. Kitco News, April 18, 2013.
Join the conversation @ The Kitco Forums and be part of the premier online community for precious metals investors: http://kitcomm.com -- Or join the conversation on social media: @KitcoNewsNOW on Twitter: http://twitter.com/kitconews --- Kitco News on Facebook: http://facebook.com/kitconews --- Kitco News on Google+: http://google.com/+kitco --- Kitco News on StockTwits: http://stocktwits.com/kitconews
Hedging Your Physical Gold When Prices Are Down | |
| 4,046 views views | 31,528 followers |
| 13 Likes | 13 Dislikes |
| News & Politics | Upload TimePublished on 18 Apr 2013 |
| chart damage pubg, damage chart fortnite, damage chart pokemon, damage chart warframe, damage chart maplestory, damage chart, damage chart rust, damage chart pubg mobile, damage chart wow, damage chart overwatch, damage chart pathfinder, damage chart maplestory 2018, damage chart maplestory 2017, damage chart of pubg guns, damage chart blackout, damage chart ark, damage chart fortnite battle royale, damage chart csgo, damage chart pubg xbox, damage chart tarkov, technical selling definition, technical selling stocks, technical selling adalah, technical selling meaning, technical selling marketing, technical selling process, technical selling futures, selling technical books, selling technical products, selling technical services, selling technical analyses, technical short selling, technical consultative selling, technical unique selling point, technical unique selling proposition, technical personal selling meaning, technical personal selling, short selling technical analysis, best selling technical analysis books, ebay selling technical difficulties, netflix, https://www.netflix.com/, etfcu, etfmg, etf stock, etf vs mutual fund, etfmg alternative harvest etf, etf vs index fund, etf wi, etfc, etf screener, etfe, etfdb, etf investing, netflix movies, etfs to buy, etf vs stock, etf mj, etf securities, etf expense ratio, gold prices falling, gold prices falling 2018, gold prices falling reason, gold prices fall on stronger dollar, gold prices fall 2017, gold prices fall news, gold prices falling trend, gold prices drop in india, will gold prices fall, will gold prices fall in 2019, will gold prices fall in pakistan, will gold prices fall in 2018, why have gold prices falling, taxfreegold gold prices fall, will gold prices fall in 2017, will gold prices fall in dec 2017, gold coast property prices fall, why do gold prices fall, gold prices rise or fall, why did gold prices fall in 2013, hedgehog, hedge fund, hedgehog pet, hedgehog for sale, hedge trimmer, hedge apple, hedge fund manager, hedgehog care, hedgehog lifespan, hedgehog cage, hedge witch, hedgerow, hedgehog names, hedgehog in spanish, hedgehog food, hedgehog mushroom, hedgehog price, hedgeye, hedgehogs for sale near me, hedgehog habitat, gold market cap, gold market value, gold market news, gold market price today, gold market today, gold market dubai, gold marketwatch, gold market chart, gold market hours, gold market price chart, gold market prices, gold market history, gold market scandal, gold market price history, gold market florence, gold market near me, gold market trend, gold market symbol, gold market size, gold market analysis | |
Không có nhận xét nào:
Đăng nhận xét