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Rising commodity prices across the board are a clear indication of how badly national currencies are being managed. It is only a matter of time therefore before gold starts climbing higher. Silver has already begun a new uptrend, but now needs gold to confirm.
The two Comex gold calls expired last week. I recommend that this position be replaced with a new Dec’11 call.
Continue to hold the two March silver calls, which are in the money. I am planning to roll forward these silver calls and will make a recommendation before these calls expire.
Gold
1) Long from $1333.50 bought on the 31 January London AM fix. Stop-out point: sell at an intraday stop-out point if Comex spot gold trades at $1327.50. If stopped out, then re-buy this position on the first Comex spot price close above $1334.00. (updated 1 February 2011)
2) Buy one position at $1334.00 or on the 1 February London PM fix, whichever comes first. Stop-out point: sell at an intraday stop-out point if Comex spot gold trades at $1317.00. (updated 30 January 2011)
3) Buy one position on the first Comex spot gold close above $1342.00. Stop-out point: sell at an intraday stop-out point if Comex spot gold trades more than $15 below your purchase price. (updated 1 February 2011)
Silver
1) The position bought at $27.934 on 28 January 2011 was sold on January 31, 2011 at $27.675, which was its stop-out point. Loss: 25.9¢
2) Long from $28.174 bought on 31 January 2011 Comex spot silver close. Stop-out point: sell at an intraday stop-out point if Comex spot silver trades at $27.925. If stopped out, then re-buy if the Comex spot price the same day trades at $28.05. (updated 1 February 2011)
3) Buy one position on the first Comex silver spot close above $28.48. Stop-out point: I’ll set a stop-out price after this position is filled. (updated 30 January 2011)
Comex options (options are high-risk and therefore not for everyone):
The two Feb’11 Comex 1360 gold calls bought at $55.70 on the November 15, 2010 Comex close expired out of the money. These calls were rolled from the two Dec’10 Comex 1200 calls closed with a $229.10 profit. Thus, the overall profit on this trade was reduced to $117.70.
Long two Mar’11 Comex 26.00 silver calls from $2.267, the November 15, 2010 Comex close.
Buy one Dec’11 Comex 1500 gold call at the market. I’ll use today’s closing price for record keeping.
Hold these calls without any stop-out point. (updated 1 February 2011) View all Trading Comments >>
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