I am buying 23 k worth of physical gold coins

[JSHINV]

19.50 x 100 lot = 1950. Yes, I know that. One contract might be worth the risk. You only get the $360,000 if it is way over 1500 before expiration or 1500 or more close to or at expiration, otherwise you get less. I note a lot of activity in the 1000 12/09 contracts. But, not to many people touching 1500 yet.

I understand about the leverage with metals. One of the things I trade the ZG and ZG options.

I guess it is the size of the trade, not the trade itself. If I was going to do that, I do one spread not twelve. But, it's simply not me. I don't have the patience for a spread that expires in two years. Not to say I haven't done leaps. I bought some Dec 2009 SPX puts when the VIX was around 10 last year. Watched the SPX go up and the value go down, bothered the hell out of me. But I held on, then the SPX went down in later in 2007 and made some money.

To each his own. There is no one right way.

All the best.

Quote from PohPoh:

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"

 

[thriftybob]

Quote from rateesquad:

Yup buy some land instead. There is no greater asset.

Until you find out you need to pay the taxes and insurance and upkeep.

 

[jamesbourne007]

Quote from newguy05:


What do you do with the gold coins? and how do you sell it back, goto a pawn shop? not making fun, just curious.

ebay

btw: Look up "AMERO" the new future currency of the North American Union made up of Canada, USA and Mexico. No wonder why the Dollar is in a free fall...the new currency is just waiting around the corner!

 

[annaland]

I haven't read the entire thread so I apologize if someone recommended this already, but I would look on eBay for gold coins.

Good luck.

 

[TraderDrake]

Quote from Hydroblunt:

Gold futures or ETFs are just paper. It's all fine and dandy now, but a fiscal crisis starts emerging, none of those contracts will be honored.

The Gold futures market is smth like 50 times the size of the actual physical supply. It's just IOUs from speculators.

True, but you better buy a gun while you're at it. If you're "preparing " for armageddon, and it materializes, you'll have bigger concerns. You're gold might even get you killed.

 

[mgabriel01]

Quote from TraderDrake:

True, but you better buy a gun while you're at it. If you're "preparing " for armageddon, and it materializes, you'll have bigger concerns. You're gold might even get you killed.

I would agree
If you anticipate a world where all contracts are reneged on ---- best bet is a small plot of land in the mountains, an assault rifle and lots of ammunition

 

[rcanfiel]

Consider buying lots of solar panels. If the wheels come off, you may be living without electricity. In the meantime, you are getting payback on your investment in the form of free electricity. You can always "disguise" them on your roof.

Also, consider candles. Convert your appliances to high efficiency. Insulate your house well. Work to reduce your energy needs. Get a much higher MPG vehicle so you need less gasoline.

I suspect people living in dark houses might be willing to barter for your surplus panels. no electricity = no refrigeration, cold showers, no lighting, heat, etc.

Do the same with solar water. It is cheap, and you will save a lot of money and energy

 

[Ivanovich]

Quote from arealpissedgoy:

The Canadian economy is wholly natural resource based and it's east coast manufacturing is close to 90% dependent on the US economy.

.

Wholly natural resource based? Resources make up 6% of the Canadian economy.

http://en.wikipedia.org/wiki/Economy_of_Canada

As for the rest of the "end of the world" discussion, it belongs on Kitco with the aliens are coming threads.

 

[j_wentz1]

Someone said look on EBay for coins. Some advice, stay far away from EBay! Since the price of gold and other PM's has skyrocketed, the scammers are crawling out of the woodwork there. Even long term sellers have had their accounts hijacked and people have been ripped off. EBay of course, doesn't give a shit. As long as they get their cut, they couldn't care less. For some things EBay may be OK, but for high end things like gold coins that you only see a picture to purchase.........forget it!

If you are going to buy gold/silver, buy from a larger, well established outfit like apmex.com, kitco.com, etc... They have reputations to protect, and are very reputable.

 

[Rearden Metal]

Quote from j_wentz1:

Someone said look on EBay for coins. Some advice, stay far away from EBay! Since the price of gold and other PM's has skyrocketed, the scammers are crawling out of the woodwork there. Even long term sellers have had their accounts hijacked and people have been ripped off. EBay of course, doesn't give a shit. As long as they get their cut, they couldn't care less. For some things EBay may be OK, but for high end things like gold coins that you only see a picture to purchase.........forget it!

If you are going to buy gold/silver, buy from a larger, well established outfit like apmex.com, kitco.com, etc... They have reputations to protect, and are very reputable.

Thanx for the apmex link- That's a most impressive list of in-stock inventory, for those who like to get fancy and go beyond the basics (Krugerrands, bars, Eagles, Maples, etc). Tulving still crushes them on price, however. I still have to recommend Tulving over all the others.

Another thought: AJPM is like Brittney Spears- Used to be pretty hot, but has recently deteriorated horribly. <b>Don't do business with AJPM!</b> They'll make you wait two months, and when you ask about your delayed order they'll lie to you & insult you.
You've been warned.