Market pros who do not invest in the instruments in which they trade?

Quote from Cache Landing:

LOL, sorry I'm an idiot. I don't trade GC and didn't realize that it trades 100 troy ounces contracts.

Also, you won't be able to do it via the mini. It is cash settled. But it would work if you didn't want physical possession of the metal.
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No worries!

The mini GC contract is cash settled only? - I learned something new today.

Thats a win...
 
Quote from Crispy:

For my thread title I define "trade" as short term market activities in which the player hopes to realize maximum profits with minimal time exposed to the markets. And "invest" as buying paper assets with potential future growth and or yield possibilities with a long term time frame
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I typically take my income garnered from financial market activities and buy hard assets such as physical gold. Or I buy long dated CD`s which are close in yield to the 10 year treasuries. And eventually I hope to buy some land and a cabin when my mortgage is paid off.

I have found that it keeps me completely objective and open minded when I have no positions to monitor or concern myself with outside of what my model is telling me to do.

My way is neither right, wrong or perfect is just makes me feel comfortable.

I am just curious if there are any other people who think as I do?

Just for fun, below is one months allocation in physical gold.

2yovqip.jpg
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An ounce and a harf? Big spender! If the gold and the cabin are part of a bug-out plan, I hope you are investing in lead! Also, you should ditch the Krugs and buy Eagles, or whatever doesn't look like funny munny where you live.
 
Quote from Cache Landing:

You do realize that you're paying a 3% premium buying physical gold?

I don't understand why you aren't simply buying the nearest futures contract and waiting for settlement. It is physically settled.
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All of the gold contracts are at most usually cash settled.

This topic has been covered before so I will be brief. A broker whom I know had a customer who tried to get 100 contracts of gold by buying the futures and holding them to expiration. He got 1 contract delivered, and 99 cash-settled. This really ticked off the investor as one lot of gold was a hassle if he couldn't get the rest. Sold it back into the market.
 
Quote from Steven.Davis:

All of the gold contracts are at most usually cash settled.

This topic has been covered before so I will be brief. A broker whom I know had a customer who tried to get 100 contracts of gold by buying the futures and holding them to expiration. He got 1 contract delivered, and 99 cash-settled. This really ticked off the investor as one lot of gold was a hassle if he couldn't get the rest. Sold it back into the market.
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Interesting... I'm wondering how a contract can arbitrarily settle in cash, when that isn't in the contract. The contract specifically has a physical settlement, and therefore the seller should be under contract to make delivery. No?
 
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