Gold and SilverTrading Notes: 27 February, 2012

Both gold and silver had a great week, with gold rising 2.9% while silver soared 6.4%.  Silver is now in the process of breaking through resistance at $35.  I expect it will be tough going for silver until it hurdles above $36.  When it does, the silver price will begin to accelerate higher.

Gold

1) Long one position from $1,586.00 bought on January 3, 2012.  Stop-out point: sell at an intraday stop-out point if Comex spot gold trades at $1714.00.

2) Long one position from $1,655.20 bought on the Comex NY close on January 17, 2012.  Stop-out point: sell at an intraday stop-out point if Comex spot gold trades at $1726.00.

3) Long one position from $1,757.10 bought on the Comex NY close on February 21, 2012.  Stop-out point: sell at an intraday stop-out point if Comex spot gold trades at $1748.00 or has a Comex close in New York below $1765.00, whichever comes first.

Silver

1) The position bought at $34.413 on the Comex close in New York on February 21, 2012 was sold on February 22, 2012 at $33.963, which was its stop-out point.  Loss: 45.0¢

2) Long one position bought on the Comex close in New York on January 18, 2012 at $30.514.  Stop-out point: sell at an intraday stop-out point if Comex spot silver trades at $33.78.

3) Long one position bought on February 21, 2012 at $33.75.  Stop-out point: sell at an intraday stop-out point if Comex spot silver trades at $34.22.

4) Long one position bought on February 21, 2012 at $34.20.  Stop-out point: sell at an intraday stop-out point if Comex spot silver trades at $35.08.

Gold/Silver Ratio – Traders are short ratio (long silver and short an equal dollar value of gold) from 54.2 on January 3, 2012.  Stop-out point: Unwind this trade on the first New York Comex close above 52.3.

Comex options (options are high-risk and therefore not for everyone):
The Mar’12 Comex 40 silver call bought at $0.66 on the November 28, 2011 Comex close expired out of the money.

Long one Apr’12 Comex 2000 gold call from $27.70, the November 28, 2011 Comex close.
Long one Apr’12 Comex 1800 gold call from $63.20, the October 21, 2011 Comex close.

Long one May’12 Comex 40 silver call from $1.812, the October 21, 2011 Comex close. 

Long one Dec’12 Comex 2000 gold call from $54.00, the January 3, 2012 Comex close.
Long one Dec’12 Comex 40 silver call from $1.761, the January 3, 2012 Comex close.