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Douglas Lake Minerals Inc DLKM



GREY:DLKM - Post by User

Comment by Jasper16on Jun 30, 2009 2:19am
261 Views
Post# 16107755

RE: please explain

RE: please explainIf I understand it correctly the trade is to go long gold and short silver and or the reverse. You then adjust it accordingly to the number of long and short positions held in each. You are playing a spread trade I believe. I don't trade contracts so my verbage may be off but I think I understand the principle of it in an ABC. The current gold/silver spread is 67 ounces (crazy) it was 54 when silver was 20 something and in the Hunt bro's days went to 14.

If the Comex gets squeezed for the real thing in both then one side of the trade most cover shooting in this case silver in a Moon shot.  

I hope I have this right, plz correct anyone.

Jasper
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