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[LADoc00]

Im moving on a big trade for GLD/SPDR, in terms of gold investing that is actually practical, is this the way to go??

Ive done my due diligence and research but need to some final words from the peanut gallery as my wealth manager is unable to be reached atm....

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[mgdsh]

what's your time frame?

 

[LADoc00]

what's your time frame?

Basically now, I held back. Some is going to the GLD spider and some into gold futures in the derivative market.

 

[mgdsh]

I see, ever thought about using the ultra long gold? (DGP) as opposed to the futures contracts?

Only reason I say that is because futures contracts are highly leveraged and definitely not for the faint of heart or for those that aren't able to watch it like a hawk.

Personally I have no real opinions on short term gold. Longer term either we rocket much higher or we crash much lower. IE either we make it out of this crisis and go through a hyperinflationary period or the deflation continues. Only time will tell

Good luck

 

[LADoc00]

I see, ever thought about using the ultra long gold? (DGP) as opposed to the futures contracts?

Only reason I say that is because futures contracts are highly leveraged and definitely not for the faint of heart or for those that aren't able to watch it like a hawk.

Personally I have no real opinions on short term gold. Longer term either we rocket much higher or we crash much lower. IE either we make it out of this crisis and go through a hyperinflationary period or the deflation continues. Only time will tell

Good luck

I have no experience with ultra long gold, in fact I have no clue what it is....
let me do some reading.

 

[The White Coat Investor]

Gold has a long-term, after-inflation return of zero. Consider that for a long time before investing in it.

 

[edmadison]

Gold has a long-term, after-inflation return of zero. Consider that for a long time before investing in it.

If you had invested in gold in 1982, your current rate of return would be about 0% compare that to the S&P, even when it's down about 40% in the last year.

The only way you can win is to time the market, which is usually a pretty tough strategy.

 

[The White Coat Investor]

I see, ever thought about using the ultra long gold? (DGP) as opposed to the futures contracts?

This is a stupid long term investment. Very high risk:return ratio. These leveraged ETFs (2X, 3X funds) are designed for short term trading/speculation. Long-term, the costs of the leverage really eat into the returns. For example, a 2X S&P fund runs twice the risk of a typical S&P index fund, but long-term only promises 1.4X the return due to the costs and the volatility of the strategy. It turns out that 2X the DAILY return does not equal 2X the ANNUAL return. All things being equal, a lower volatility investment is always better.

 

[mgdsh]

This is a stupid long term investment. Very high risk:return ratio. These leveraged ETFs (2X, 3X funds) are designed for short term trading/speculation. Long-term, the costs of the leverage really eat into the returns. For example, a 2X S&P fund runs twice the risk of a typical S&P index fund, but long-term only promises 1.4X the return due to the costs and the volatility of the strategy. It turns out that 2X the DAILY return does not equal 2X the ANNUAL return. All things being equal, a lower volatility investment is always better.

I'm a trader not an investor, thus the suggestion, but the OP was asking about possibly buying gold futures... which expire, are highly leveraged, are far more volatile and trade 24/5; thus unless you're a skilled trader you should not be touching futures contracts.