"When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe." … Frederic Bastiat

Evil talks about tolerance only when it’s weak. When it gains the upper hand, its vanity always requires the destruction of the good and the innocent, because the example of good and innocent lives is an ongoing witness against it. So it always has been. So it always will be. And America has no special immunity to becoming an enemy of its own founding beliefs about human freedom, human dignity, the limited power of the state, and the sovereignty of God. – Archbishop Chaput

Trader Dan's free work will soon be available at www.traderdan.biz

Saturday, April 30, 2011

Trader Dan on King World News Weekly Metals Wrap

Please click here to listen to the King World News Weekly Metals Wrap;



  1. hey man just wanted to see you've been doing a wonderful job; thanks for all of your work!

  2. Dan,
    Thank you for your comments and your work also.
    Your comments have literally been invaluable and incalculable in impact.

    In this KWN broadcast, you made a specific point about undercapitalized entry into the commodities options trading market.

    I was considering such an entry, but am also not very wealthy in terms of USD. Therefore, I do not have a $100K for an options account.

    Still, I can not locate silver or gold in inventory in local coin stores or bullion investment houses in this area.

    I am therefore, now stuck, in a quandry. With the prospect of continued monetary debasement, I am very much wanting to add to my silver and gold position.

    However, options provide a vehicle to price point now for future acquisition.

    On the other hand, the options on the CME silver contracts are excessively high for my entry. This only leaves retail trading of the SLV or GLD ETF.

    My impression of this trade is that I am only fueling the speculative position of JPM or HSBC by taking a long position in the ETFs.

    In fact, those banks are the very people locking me out of the physical.

    Is there any commentary on how regular people like me can locate small quantities of silver bullion on a regular basis?

  3. StrongSideJedi -

    You could try trading the mini silver contract although the liquidity is still low in there meaning that it is a bit harder to get in or get out at a decent price if you need to in a hurry.

    The other point however is that there is a difference between a smaller trader working with options on a full sized silver contract versus the futures. The futures leave you with very large and sometimes undefined risk. With options you know right up front how much money you are risking. Once you purchase a call option or a put option, that is all the money you will risk with it. The upside potential is umlimited in the sense if you catch a big move correctly.HOwever, with an otpion you have a time period that works against you because an option will expire at a definite time and as it nears that expiration day, it can begin to lose what is called its "time premium". so not only do you have to get the direction of the move right but you also have to get the timing right.

    Give JB Slear a call - he owns Fort Wealth Trading Company (see his logo on the top right column on this site). He works with options for his clients quite a bit and can help you if you want to go this route.

  4. HI Dan,

    I just wanted to say that I love your invaluable, in-depth, AND accurate commentary here, at JSMineSet, and King World News.

    Hoping for the best (dreaming), but preparing for the worst(hyperinflation).

    The Howler in Michigan

  5. To those of you who have written to express your thanks - I thank you.

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  7. Always enjoy your insights on KWN. Keep up the good work.

  8. Does trader dan trade any other commodities besides gold and silver? For instance, copper?


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