Do retail traders ever basis trade gold of platnium?
- Thread starter UVXY20
- Start date
Depends on why you want physical gold. If you expect to personally take physical custody of the gold, then your options are fairly limited. You will be dealing with high fees for insured transit. And unless you are talking really large amounts of money, e.g., seven figures...
... then you will be thought of, rightly or wrongly, as a crank who wants to have gold bars in a safe in your basement so you can trade them for food and ammunition when the zombie apocalypse happens.
If you want to own gold or sell it short as a hedge against something else, e.g., gold mining stocks, gold futures, whatever...
then the exchange-traded fund GLD is one way to do that.
... then you will be thought of, rightly or wrongly, as a crank who wants to have gold bars in a safe in your basement so you can trade them for food and ammunition when the zombie apocalypse happens.
If you want to own gold or sell it short as a hedge against something else, e.g., gold mining stocks, gold futures, whatever...
then the exchange-traded fund GLD is one way to do that.
GLOSSARY
basis trade - trading strategies built around the difference between the spot price of a commodity
and the price of a futures contract.
gold of platinum - a type of gold that is extracted from platinum
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There are some traders who also do physical trading just for experience.
At least he's maintaining good trigger discipline.