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On the Wings of Gold: GF's GAMBLING & COMMODITIES Thread


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Housekeeping.

 

I have now built a portfolio as follows (all in USD):

 

Issuer Soc.Gen. Gold.Sachs Soc.Gen. Gold.Sachs Soc.Gen. Soc.Gen.

Strike 90.00 110.00 130.00 150.00 200.00 300.00

Av. Price* 20.60 15.24 8.11 7.65 4.18 1.26

Invested 12.91% 24.55% 0.00% 24.66% 13.11% 24.76%

 

(*Price at 1:1 parity!)

 

Which has a net profit profile in Nov. 2016 (depending on the Dec. Brent crude future) as depicted below (all in USD).

 

So, is the price at $80, I shall lose it all. Is the price at $250, I'll have a multiple of seven. In case it goes to $500, I'll pocket a multiple of almost 70. As it stands, breakeven is $149.

 

I will possibly extend this portfolio in the not too distant future. But for now I am quite happy with it - it is a very nice insurance policy for high oil prices.

 

I was asked to post further details on the calls. I can only do that with respect to the ones I have bought. They might not be available in UK or US markets, so sorry for this, you will have to search yourself at the corresponding investment bank desks. Here are links to the calls that I bought (note that this is a mix of European style (SG) and American style (GS) calls):

 

http://www.sg-zertifikate.de/hebelprodukte...////58971/list/

http://www.goldman-sachs.de/isin/detail/XF...t_type,Warrant/

 

The risks that I have are obvious: mostly counterparty risk (SG and GS are investment bank turds). There is FX risk: I insure high USD oil prices, but what I actually needed to insure are high EUR oil prices. Another risk that bothers me is geographic: I could only find Brent calls for 2016, but no WTI calls. I have bought all these calls on exchanges to ensure that I can sell them to other people than just the issuers if I wanted to (so, regarding liquidity risk, I avoided OTC).

 

Now I only have to wait 6 years. :)

 

oilcalls.png

 

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Housekeeping.

All these calls can be bought on the Frankfurt exchange. Some have othe parities than 1, some are European style, some American style. They all pay a cash EUR equivalent on the due date.

 

SG $90: DE000SG00G06

GS $110: DE000GS15KB9

GS $130: DE000SG00G22

GS $150: DE000GS15KE3

SG $200: DE000SG00G55

GS $200: DE000GS15KG8

SG $300: DE000SG00G89

 

EDIT: In any case, make sure you buy/consider the right product and check what it does. I accept no responsibility whatsoever for any actions taken upon reading this thread here.

 

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Pinetree testing key support?

 

PNP.t ... update

xx

 

Looks as if it testing key support at about C$3.25.

 

For a long time, I look at them as being a sort of "proxy" with Laramide / LAM.t, a uranium stock.

LAM should hold above $2.10, then $1.75, to stay healthy.

 

I still own some, but have lightened up on LAM.t, substantially

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My next purchases will be (depending somewhat on short term market movements):

 

- More Pinetree. Inwentash made a lot of sense in his interview.

- Rounding off a few edges in my oil hedge.

- Committing to more gold bullion through my SIPP.

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My next purchases will be (depending somewhat on short term market movements):

 

- More Pinetree. Inwentash made a lot of sense in his interview.

- Rounding off a few edges in my oil hedge.

- Committing to more gold bullion through my SIPP.

Did exactly that.

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http://www.ft.com/cms/s/0/cf0a73bc-2a44-11...l#ixzz1CsyhLNtd

 

High food prices have been a contributing factor to the recent wave of social unrest across North Africa and the Middle East. In Algeria earlier this month, young rioters chanted “Bring us sugar!” The cost of the sweetener in the wholesale market is at its highest in 30 years.

I can't really, since it is tied up in a double-levered ETC, but it is doing fine I have to say.

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Hi GF,

 

You might like the following video on Shale Gas:

http://www.youtube.com/watch?v=iox39-hW5xA

 

It's made me think twice about getting into Natural Gas.

Very interesting, thanks.

 

This is here would be Howard Kunstler's reply:

 

Think Fracking will save us?

http://steveaustinlex.wordpress.com/2010/1...g-will-save-us/

 

Who to believe? It sounds like a dream come true indeed.

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I need to watch "Gasland". Keep in mind, Europe is densely populated. If you mess up the water table here, you'll have many more people complain than in the US or Kanada.

 

I saw a show on PBS about this: http://video.pbs.org/video/1452296560/

 

First off, I must confess that I don't know much about Shale gas and the process of fracking however all of the environmental concerns expressed seem to be about hydraulic fracturing. This is the process of pumping a cocktail of water plus other nasty chemicals into the ground. Much of this cocktail isn't recoverable, hence the reported problem with it getting into the water supply. I'm a little surprised that local councils are willing to give approval to companies to do this. Its sounds irresponsible to be honest.

 

There is a new technology now however which uses liquid petroleum (LPG) in the fracking process. As the LPG converts back to gas, it just joins the other gas in the ground; the ground water near the surface is unaffected. I'm sure I read somewhere that everything pumped into the ground comes back out. It sounds like a cleaner solution. The only reason I know about this is because I researched the company which is patenting the new technology. I don't want to sound like a pumper so I won't mention it.

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Thought this old article might be worth mentioning given that nat gas is currently under $4. Some excerpts below:

http://www.energyandcapital.com/articles/n...-chesapeake/853

 

 

At under $4 per Mcf, only about half the producers can break even, let alone show a decent profit.

 

 

Unfortunately, unconventional shale gas is more expensive to produce than conventional gas, and only a small fraction of the potential makes economic sense when gas is selling for $3.75 per Mcf. According to global energy advisory firm Tristone Capital Inc., the average cost of production in the top nine North American shale plays is around $4.50 per Mcf.

 

People say that the best time to invest in something is when nobody else is.. So is now the time to buy into Nat Gas?

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What Uranium miners are ones to check out GF?

I might add more to my current holdings (Strathmore, Hathor, Uranium One, Denison) once I have more fiat money to invest. Need to wait for that salary.

 

I might put more into Pinetree too, and then I sort of got interest in Pretium by Bob Quartermain, who recently got interviewed by Puplava.

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I might add more to my current holdings (Strathmore, Hathor, Uranium One, Denison) once I have more fiat money to invest. Need to wait for that salary.

 

I might put more into Pinetree too, and then I sort of got interest in Pretium by Bob Quartermain, who recently got interviewed by Puplava.

 

Just added some more Pinetree today, based on a trendline touch. If she breaks lower from here I'll be out immediately and look to buy around the $3.5 area.

 

Also bought some Mega Uranium (MGA.to) just under the $1 level for the same reason, chart presented a low risk entry. Looking at all the others you mentioned above, they're all in roughly the same position, ready for a break one way or the other.

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