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I am buying 23 k worth of physical gold coins
- Thread starter bad feeling
- Start date
Quote from bad feeling:
Ok ET time to prove your worth, I am buying over 20 k worth of gold because I would rather be a stupid man with gold than a smart ass with paper money.
Before I go to my bank and ask my advisor, what do you guys say
Where should I go to buy coins.
There is no way I am buying from some jewelry asses, they will price me up to 40% mark up
any thoughts are appreciated
You should buy a dozen GCZ9 1200-1500 gold call spreads with your 23K...
If gold expires at 1500 or higher on November 23rd 2009, you will be worth 360K..
I second the comments from texrex.
One key benefit of owning physical gold is that there is no need to worry about the counterparty risks associated with owning derivatives such as gold ETFs and/or gold futures.
One key benefit of owning physical gold is that there is no need to worry about the counterparty risks associated with owning derivatives such as gold ETFs and/or gold futures.
Quote from texrex2002:
If the dollar goes to pot (and it doesn't have to be nuclear holocaust pot, just continued long term fiscal horse hit pot + greedy bankers screwing everyone pot), I take my gold, move to Europe or some other place where the economy hasn't tanked and live there. Not sure why "gold tanks to $400" and "social order comes to an end and people are stabbing each other over cans of tuna" are the only options considered. Are we all 5 years old?
I found it. About 19.50 per spread which would be a debit of the full $23,000 and change - the full amount he wants to invest in coins Say gold reaches just reaches $1200, but no more the whole $23,000 is lost.
Not for me and not insurance - a bet. But, you know, some people get it right with these kind of bets.
Not for me and not insurance - a bet. But, you know, some people get it right with these kind of bets.
Quote from JSHINV:
How much does the debit spread cost? I tried to look it up and had trouble.
Quote from JSHINV:
I found it. About 19.50 per spread which would be a debit of the full $23,000 and change - the full amount he wants to invest in coins Say gold reaches just reaches $1200, but no more the whole $23,000 is lost.
Not for me and not insurance - a bet. But, you know, some people get it right with these kind of bets.
No..it means that it costs $1,950 per spread, each with the max earning potential of $30,000 (less 1,950 plus juice)....Max loss is the $23,000...a purchase of the physical will not result in total loss, of course...
But the leverage is the story..
if you buy the physical, at $850/oz, you can buy 27 oz of gold...
if you do the spread above, you buy 12 spreads and are leveraging 1200 oz of gold...
A move to $1500 / oz at Dec 09 expiration means that your physical is now worth $40,500..
the option spread would be worth $360,000
Old saying: "Those who got gulions don't buy bullion"