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How to go long on silver, gold, platinum, sugar etc?

Discussion in 'Commodities' started by kransky, Mar 4, 2008.

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  1. kransky

    kransky

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    I am searching for a way to do this. I dont see how to using comsec my current broker.

    I am not an "active trader" though, i estimate i'll make 1 trade per week
     
  2. CamKawa

    CamKawa

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  3. Nick Radge

    Nick Radge

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    I advised my subscribers to go long Silver back in January using the iShares Silver ETF (SLV)

    With Gold you can use the Aussie one or the US the Gold Trust ETF (GLD).

    If you are concerned about a weakening US dollar, there are also some good commodity ETF's based in Canada. The CAD should be a good safe haven like the AUD
     
  4. Temjin

    Temjin

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    SLV is one option.

    Another option is the ETCs (Exchanged Trading Commodities) from etfsecurities.com, which you can buy from the London Stock Exchange.

    Unfortunately, Interactivebrokers (the international broker I use, or almost every active traders use here!) have suspended access to these ETCs because of a clearning problem. Something along to do with shares in a london market but valued in US dollars, which they found it....strange.. And it cost me a lot of profit recently because I had decided to buy some cotton ETFs but were blocked from it. (strange enough, I was able to buy some sugar and the soft commodities basket ETFS.

    These would be your options to get involved in the commodities market without resorting to highly leveraged futures.

    Remember that these shares are all denominated in US dollars, thus, I usually hedge against the fall in USD by borrowing the dollars to invest instead.

    As usual, you should see your financial advisor to find out if these investment options are suitable for you.
     
  5. CamKawa

    CamKawa

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    Did IB say how long ETC's would be blocked for?
     
  6. Temjin

    Temjin

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    All I got was, could be permanetly, could be temporary and will let me know. I've already asked them to keep me updated via support ticket and as well as on the IB thread in this forum.

    I really hope it's not permanetly cos that would suck alot!
     
  7. CamKawa

    CamKawa

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    I'll say, I've just spent half the day doing laps of the internet trying to finds ways to conveniently directly invest in Platinum, other metals and natural gas. ETC's on the LSE via IB came up trumps. :(
     
  8. exgeo

    exgeo

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    Some of the ETC's are denominated in sterling. AGAP is one that I am long of. It's a basket of most of the soft commodities- a bit less volatile than investing only in wheat or soyabeans etc. They seem to be introducing more sterling-denominated funds and also some short-etf's too, which will be handy once this boom has run its course. www.etfsecurites.com

    There are equivalent US-listed funds too I think; presumably these would be USD dollar-denominated and therefore would't cause any settlement problems?
     
  9. kransky

    kransky

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    what broker do you recommend?
     
  10. gfresh

    gfresh

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    I've been researching this a little..

    If you are at all able to trade US equitities, some of these ETF's look quite promising (scroll down to commodities). This is not a recommendation, simply an observation!

    http://www.powershares.com/products/default.aspx

    These funds trade on underlying commodity futures.. performance has been very good on some of them (you can pull up a US chart for their stock codes), and much better than the likes of GOLD on our ASX. 20% in 2 months sure beats most equities I can find locally.

    Of course at some point precious metals will probably decline and you will need to keep an eye on them - but for now..
     
  11. kransky

    kransky

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    i have found GOLD on the ASX if you want to go long on gold
    but i cant find anything that is easy to do to go long on silver.. and i really want to go long on silver.
     
  12. Uncle Festivus

    Uncle Festivus

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    CFD providers usually have a range of PM cfd's, if you are willing to take the spread offered. IG below
     

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  13. kransky

    kransky

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  14. Temjin

    Temjin

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    Nope, your efforts are not in vain. :)

    https://www.aussiestockforums.com/forums/showpost.php?p=267223&postcount=588

    Can buy the USD dominated ETCs from the LSE via IB again.

    Though all of my current ETCs (except gold/silver) got stopped out. :D

    http://www.ainsliebullion.com.au/ is slightly cheaper at 4% premium for gold. No need for postage cos I can pick it up at their office. :D
     
  15. kransky

    kransky

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    does anyone use/recommend CMC Markets?
    http://cmcmarkets.com.au/

    I see they use spread widening to make their $.. is it very large?
     
  16. heredownunder

    heredownunder

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    Is there any way to invest in gold with a leveraged investment, such as a warrant?

    Are there gold funds out there that are any good?

    Is just buying GOLD on the ASX the best way to invest in gold?

    Thanks.
     
  17. Temjin

    Temjin

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    Futures/options/CFDs can give you leverage exposure to gold prices. Again, see a financial planner or be very aware of the risk involved before doing anything.

    Do you mean close ended funds? If so, I don't know.

    Depends. The gold hold by the GOLD Bullion are all unallocated. So no one can really verify if they are holding actual physical stuff.
     
  18. Trembling Hand

    Trembling Hand Can be found on the bid

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    If using CFDs to hold a commodity remember you are basically taking a loan out against the value of that contract. So you are going to be paying interest that will eat away at your equity if holding for a while.

    If using futures you have a problem of rolling the front month contracts before expiry or having to buy back dated contracts.

    And options thats a different set of problems all together.
     
  19. Young Gun

    Young Gun

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    I trade Gold Spot on CMC markets, not too sure what the spread is though.
     
  20. kransky

    kransky

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    Yeah i am holding some gold futures with CMC now... i dont care too much about the spread as i'm not trading them ... more planning on holding them for a few days/weeks

    I know that you must pay interest... but if they make you pay 10% interest per annum and gold goes up 10% in 2 weeks then you make

    10% - [ ( 10% * 14 ) / 365 ] = 9.6% over the 14 days

    I have got that right dont I (assuming they make you pay 10% interest)
     
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