Hedging less than full future contract volumes

[snoman701]

Is there a straightforward way to hedge less than 1000 oz of silver? (also curious on the PGM's in less than 100 oz lots)

With corona cases going through the roof, I'm less than enthusiastic about the future of silver prices, but I'm also pretty busy so I don't have time to get my load around.

I could short SLV, but I'm not sure if there are better options.

I have access to just about anything you can do through TD Ameritrade or AMP futures.

 

[Palladium]

Don't know anything about the trading thing, but are you expecting silver to go down?

 

[Lino1406]

Who is betting on price decrease, selling or short selling (gives higher hedge for greater risk). Complete hedging is by short buying and short selling both

 

[snoman701]

Who is betting on price decrease, selling or short selling (gives higher hedge for greater risk). Complete hedging is by short buying and short selling both

I need to go pick up a few hundred ounces of silver from a friend today, and have more than a few hundred ounces on hand....just not quite a thousand ounces. I'd be happy to sell it at the current prices, but I really don't have time to get to the melt shop right now, or even get it together in to one pile to figure out exactly how much I have (may well be over 1000) So I figure if I can short it on paper, any loss in spot will be protected by the short, and any gains will just not be realized because they will be cancelled out when I sell the physical, less the interest on the short.

In the past I have used /MGC which is a 10 oz gold future, and wasn't sure if there is a similar option (that I have looked for but been unable to find) to protect 100 oz lots of silver, or even 10 oz lots of the pgms.

As to whether I expect the price to go down. I have no expectations in this market, nor do I care to gamble. What I don't want is for it to run back down to $12 or even $15 without protecting the risk I'm taking on buying more, without having the time to get rid of it.

 

[Lino1406]

To my opinion, without the left gold standard, the prices may shoot up in dollars that loose value, and no body can protect himself, except the speculators which form waves and realize gains in the short terms

 

[butcher]

Lino, Sad but true my friend.
You could not say it better?
The metal value goes up in the value of the worthless dollars...

Well, at least the metals hold their value with bread, I cannot say the dollar will.

 

[snoman701]

Except silver doesn't hold value with bread. If it did, it would be $100 instead of $19.

My goal is to protect dollars in the short term to retain my premium as my profit, and minimize exposure....anything more than that is gambling, and I'd rather do that in the equities since I make a considerably higher percentage without the risk.

 

[snoman701]

But alas, the question of economic standards is of less use to the refiner / precious metal buyer than that of how to protect ones profits in volatile markets.

In the last week, silver has come up $1.50 per ounce. Commodities tend to lose value quicker than they gain.

10 oz of gold, 100 oz of Pd, 100 oz of Pt, 1000 oz of Ag...these are all easy to hedge. Are buyers operating in less than full futures contract volume simply not hedging to protect their investment?

 

[snoman701]

Easiest answer is an ETF called ZSL. It's just a bear silver ETF.

But it looks like it's going to need to be rebalanced soon if silver keeps climbing.