Model Transaction

On a business forum that I frequent, you can one of my old posts about how I came to develop this method. This was in May of 2010.

I bought 62.5603 troy ounces of silver (junk silver form) at a basis of $15.03 per ounce.

At the time, silver was trading for $19.48 per ounce.

Before I could sell, silver had dropped to around $17.50 per ounce, which made me realize the need for a hedge. I would have saved myself almost two dollars per ounce – this alone would have doubled my profits and reduced my volatility risk.

I ended up selling 54 ounces for $17.38 per ounce, which returned all my capital to me. The remaining 8 ounces I kept as profits. You can seem some of them in the logo for HonestSilver.com.