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Commodity Portfolio - Hedge against Fiat currencies

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DEP
Super Contributor
Simon, can Standard Bank securities manage a commodity portfolio? If so, who do I contact(amount = within private clients profile). I looking at a commodity portfolio of metals ETF's / ETN's 75% and 25% maximum commodity shares. I need to hedge against "funny Money".
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15 REPLIES 15
SimonPB
Valued Contributor
the only way to do that right now is off shhore as locally all we have is a gold etf .. plat, silver and plad next week .. but why do you want somebody else to manage it ??
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DEP
Super Contributor
Interesting Q.? Maybe just to keep me from over trading - I want to stick to my strategy. I know what I want, not sure if I'm disciplined enough.
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DEP
Super Contributor
Silver ETN been listed by STB? Been waiting for this one...
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SimonPB
Valued Contributor
hmmm, not sure a manager of your money won't over trade .. what you really want is a single commodity ETN covering many different comms, then just buy via eftsa.co.za
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SimonPB
Valued Contributor
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DEP
Super Contributor
Thanks Simon, I will do it via OST - Gold / Platinum / Silver - I will just have to place trailing stop losses of 15 - 20%. Have requested a better deal from OST (maybe you could look at my emails sent to OST last week), waiting for reply. Funds available Sept. 2010. Thanks for you help.
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SimonPB
Valued Contributor
why a trailing stop ?? why 15-20% ?? you think paper money is going to collapse, fundamentals more important then price ??
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Werner_1
Super Contributor
I would like to see the following list as ETF as well - Nat Gas, Oil - would these come down the line as well. trading crude could be very interesting, i dont know if its possible yet?
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DEP
Super Contributor
Reply to your questions: 1. I need a stop loss. 2. 15% - 20% why not? what would be your stop loss? 3. Well, collapse not sure, future will tell. We are definitely heading for a major global financial shake up / collapse in the coming years. Printing of Fiat money (mainly US$ / Euro /Pound)+ trade In-balances + record sovereign debts + record domestic debts (mainly dev. nations). Where to from here? Watch the Fed / US Gov. - the US is printing too many $, you know what happens next!
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SimonPB
Valued Contributor
well why not is somewhat random ??

but when I am doing fundamental investing - which is what you're talking about .. I don't worry about price, I watch the fundamentals and they'll tell me when to exit, just as they told me when to enter ..
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DEP
Super Contributor
Stop loss - Okay, fair point. Paper Currency vs hard commodities - What your take here?
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SimonPB
Valued Contributor
well I don't believe that commodities are a currency, haven't been since Nixon took the US off the gold standard .. paper money just fine, as long as everybody agrees to accept it (and that is what a currency is - as long as the two parties agree it means something, then it does) .. an devaluation of a currency is good for a country with debt as it devalues the debt ..
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DEP
Super Contributor
I would call commodities a store of "wealth". I don't trust the US $ /Euro / Pound or our Rand as a store of wealth. Simply, because it too easy for paper currencies to be manipulate by those in power.
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SimonPB
Valued Contributor
sure, but then there are other stores of wealth, like SHP ?? but I disagree that paper currencies are easy to manulipyate, in fact I would say almost impossible .. look at the ZAR which the gov would love weaker, look at the Euro when it was up at 1.50 and the EU were wtting themselves .. China the only country to succeed ..

there is of course one way to control a currency, print massive amounts as Zim did, but the helicopter ben double the amount of US$ in circulation inlast 4 years, and US$ is mostly stronger ..
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DEP
Super Contributor
There is wisdom in your last paragraph... US$ has not devalued YET! The US $ is big gun - key to the whole mess will be a major correction is US Bonds! Well, when it does, hopefully we'll be on the right side of the trail.
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