Brad Zigler

Which Is Headed Higher: Gold or Oil?

Much of the WTI-Brent arbitrage is related to the time value of money. WTI is a true spot market where oil is immediately deliverable; Dated Brent is actually a short-term forward contract in which oil is subject to a load-in schedule.Because of this, the current US glut and widening contango market exacerbates the Brent time differential.

There's also shipping rates to be taken into account. Delivery of WTI is by pipeline. Brent's FOB shipboard,

Another Way to Hedge Gold Stocks

Using DZZ hedges gold volatility, not the equity or management risk embedded in a stock's price.

Thus, with gold volatility suppressed, the value (negative or positive) of the company's management talent shines through (filtered through stock market beta, of course).




On Dec 02 08:59 PM Georealist wrote:

> Just a few things that need some light..First.when someone BUYS DZZ
> they are most certainly NOT hedging AUY or any other mining stock.
> They ARE hedging (establishing a Double Short positions) gold..<br/>Minin...
> stocks move..more thanone would hope..in alternate universes..and
> an investor is certainly not covering specific risk in AUY...
>
> I have a little different take on the whole long position side.....and
> the short. I'd BUY gold (GLD) any time we move to a standard deviation
> below 2 for the 52 week moving average. I'd go long DZZ (in a conservative
> averaging in basis!) at 2 or 3 standard deviations ABOVE the 52 week
> average gold price.
> It's all about the percentages baby...they didn't build Las Vegas
> going all in.

Gold Hedging: Up Close And Personal

Those aren't prices; they're hedge ratios.


On Dec 02 08:48 AM ArchDukeFerdinand wrote:

> The prices quoted on some of these gold stock is totally inaccurate.
>
> NG is selling for .55 cents and AGT is around .13 cents.

Gold Hedging: Up Close And Personal

Selling and rebuying is market timing itself. The hedge dampens volatility which preserves capital.


On Dec 01 09:32 PM Smarty_Pants wrote:

> I can never understand why I would want to hedge one stock with another
> under the presumption they will offset each other. This is essentially
> a variation on market timing because in order to take advantage of
> the expected gold rally you have to know when to remove the hedge
> (as gold starts a bull run).
>
> Why not just sell your gold stock and wait for the point where you
> would otherwise remove the hedge and buy the stock back again? Is
> this not equivalent to a pure hedge?