How to Hedge Silver/Gold Investments in Non-US denominated currencies
October 8, 2010 by admin
Filed under Gold Investments
This vid (hopefully) explains how to hedge your investments into gold and silver when you’re exposed to non-us currency fluctuations
Ummm i see lol
Hi John, can you give us some idea of the amount of money we may miss out on making by not hedging in the event of a total collapse of the USD, relative to the amount of money we would still make regardless of if we hedged or not?(like is it a massive percentage?) and what sort of movement of the AUD up against the USD before we needed to put extra money into the account?do you suggest 100:1 or 30:1 or even 10:1 safer if the funds are available?
I wish I had watched this vid before I bought silver, but better late than never, good video John
So to hedge Aus$50k of silver/gold, at 100:1 leverage = $500aus, you’d put a Forex order long on Aus$ and short on US$ . Allowing a possible short-term drop from 64 cents presently to 60c (400 pips), what size forex account would you need to put up to avoid a margin call?
And how long does it take to set up a ForEx trading account and who with? Is there a Forex similar to the ASX. And is it set up through your bank for an online trading account?)
Get the single-edged blades from the hardware store as they’ll work best and probably be cheaper. You could also use a kitchen knife.
good idea.
.
First i will have to get a razor blade because i am using a shaving machine.
Those razor blades i had bad experiences with, because i kept on cutting in my face
I was wondering about this, thanks for the vid!
One of the best explanation vids about hedging silver. Nice Video.
Nice video, but I hedge with actually buying the currency at the bank. Currently the only currency in play are the really depreciated currencies like the AUS dollar and selling all my over valued currencies like the US dollar and the Jap Yen. Problem with leverage is that if you don’t know how to trade with charts and leverage and stops it will eventually wipe you out. Owning the currency is much safer depending on if you can analysis which currency is strong or weak. This is just my opinion.
You’re welcome!
Another tip: you’ll be less likely to damage the case if you use the razor blade in a rolling motion instead of a sliding motion (imagine the case is a wheel and the blade is the road…)
thanks for the answer, I will copy this text you made and i will keep it next to the coins so i can open the cover without damaging.
Thanks again.
I have some of those too and I gave one to my daughter. I wanted her to actually be able to touch the coin so I took it out of the case.
I slid a razor blade around the case into the groove in order to separate the two pieces. By running the blade all the way around the gap the cover won’t be lopsided and will come off easier. Make sure you don’t press too hard and cut into the plastic though. Then I place my fingernail and thumbnail into the gap on opposite sides and pull straight up.
Now i think i can never open it without destroying it.
It seems to be airtight according to the dealers website.
I heard once that the presence of sulfur compounds in the air might discolor silver. And this cover prevents that than probably. So better keep it like this. If somenone wants the silver, just use a hammer i think.
Stellaconcepts, you are from australia so you might know this.
I ordered 1kg coins from the perth mint, like koala 2009.
They are in a hard plastic container. I just wondered if it is possible to open without breaking the cover. It tends to destroy my nails, and other objects might destroy the cover. Or does anyone else know how to open this plastic box the coin is in, without damaging anything?
Oh, and good time to open LONG EUR/USD either way(good room up)..i dont think this pair will go much lower anymore..i dont think we will see 1:1 parity
…had more thinkering time and figured i opened the position LONG on EUR/USD. This way i basicly am trading XAG/EUR …or whatever :p ..gotta keep watching my marging now because also the silver trade is already on the same forex broker and “paper”.
I dont use stop losses, because i will keep this position longer…i’m only leveraged about 3:1 so that should not be a “biggy” and can lighten up my position if margin call gets too close.
Btw good videos, keep it up!
stop saying woof.
Hello, i have open position on XAG/USD on a Forex platform from december(price avaraging about 12$), my account is in EUROs(i live in euro zone). Do i need to lock a hedge on EUR/USD ?
My head is empty for now trying to think and figure this out. iCan you elaborate my situation, should i put any hedges(eur/usd pair i guess)?
Well it looks like euro is still getting worse relative to dollar, so i guess it is not the smartest thing fo me to do.
you’ll have to pay substantial interest on the hedge though.
This is good info and something I’ve been curious about.. The idea of currency investing is what actually led me to invest in silver in the first place because I was convinced the dollar was going down and wanted to do something with my cash.
Investing is fairly new to me but I’ve learned a lot in a short time. In this day and age we have to do something to protect ourselves because the government and the banks are certainly not doing much for us.
Thanks again for another valuable tip.
no – in an online trading account you can enter into a short USD position buy buying euros on leverage and then at some point reverse the transaction (sell out)
how can you short dollars?
because i have euros. Must i buy dollars somewhere?
solid info
long silver
short dollar..
woof..
both ends
of stick…