the peso!! - flight - Gold up $57 in last 2 hours

vicshere says on Sep 17, 2008, 10:00:

yes woow it was up 60 something god i need gold back at 1000

listo

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gringoloid (Trustee board) says on Sep 17, 2008, 10:20:

for the first time in 3 months, i'm back into gold options...........returns on treasuries are at their lowest rate since 1954..........even the though fear rules the markets right now, those people pouring all that money into treasuries are going to get pretty sick of those measly, measly, negative inflation adjusted returns......pretty darn fast..............they're headed to gold.........

gold on its way up, baby!.........this is what im playing.....

SPDR Gold Trust (GLD) January 2009 80 Calls

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vicshere says on Sep 17, 2008, 10:22:

woohoo up 65 is that a record?

listo

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gringoloid (Trustee board) says on Sep 17, 2008, 10:34:

vic..........bloomberg is saying $950 by the end of the year.........but i wouldn't be surprised if it hit that sooner..

http://www.bloomberg.com/apps/news?pid=20601012&sid=abv6J3EnBf7s&refer...

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ColombianoGringo (Moderator) (Trustee board) says on Sep 17, 2008, 10:38:

GL, What is the best way to dabble in gold? I would like to play around with a small amount, say $5,000. I realize that I won't stand to make a lot, but I'd like to familiarize myself with that type of market.

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vicshere says on Sep 17, 2008, 10:44:

CG the best way is to buy Goldcorp 7 years ago at something like 2-3 bucks...even in this downturn i am still way ahead...my only problem i bought 2,000 bucks worth back then did buy more at 24.00 last year

listo

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vicshere says on Sep 17, 2008, 10:49:

holy crap 81 bucks i have never seen this before

listo

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ColombianoGringo (Moderator) (Trustee board) says on Sep 17, 2008, 10:49:

Pardon my complete ignorance in this field, but is Goldcorp a mining company? Could you guys point me to a good source of information for educating myself on the ways to invest in precious metals? I am sure that the companies that advertise on TV are probably not the way to go.

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vicshere says on Sep 17, 2008, 10:51:

yes mining company
i bought it on hunch back then from a freind got lucky i guess

listo

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gringoloid (Trustee board) says on Sep 17, 2008, 11:10:

bullion is actually a very conservative play........even in a big drop, you really don't lose that much.......so you won't make that much either.

for options you have to have an account set up for that........it takes a while. but brother, on those ten contracts that i mention above............you would have made $4400 in two hours, on an investment of $3800.

as brother bigbillD has taught me...........options are the only way to go.

i've been trading metals for many years...........i don't recommend this for newbies though. don't do it.

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Tinto (Moderator) (Trustee board) says on Sep 17, 2008, 11:19:

Gold is interesting today. It's the first big spike/flight to safety in about six months, even though there has been plenty of bad news and volatility in the interim, when gold DECLINED from $1000 to $770 or so.

- Confused

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ColombianoGringo (Moderator) (Trustee board) says on Sep 17, 2008, 11:21:

We all have to start somewhere GL. I wouldn't invest something I couldn't afford to lose. What is a minimum amount to start investing in options? What entity would one do that with?

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gringoloid (Trustee board) says on Sep 17, 2008, 11:32:

i'm with etrade right now but i'm changing to scot trade next year.

one contract is the minimum.... so on gld.....at the money........january calls, about $700

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gringoloid (Trustee board) says on Sep 17, 2008, 11:41:

tinto..........you have every right to be confused........and i'm about a 1000 times more confused.

take this article from mid august in the dupe news.........this is a 'lie by omission' story. the article is true, but what they're not telling you is the real reason the u s mint is out of gold is that there is no gold to be had. u s mint out of gold......unbelievable.

http://www.latimes.com/business/investing/la-fi-moneyblog22-2008aug22,...

of course in the article they're saying that it is because of 'unprecedented demand.'' maybe, but the real reason is is that they don't have any gold to make coins.

my dealers were emailing me every day in july and august saying that it would take some time to fill my order.....they just couldn't get their hands on any gold.

now......during that time, gold took the biggest hit in 25 years........wall street meltdown, war in russia and gold is in the crapper...........no waaaay.

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vicshere says on Sep 17, 2008, 13:55:

woow closed up 84.60

listo

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BillBigD says on Sep 17, 2008, 14:48:

GLD- This ETF is a great way to play gold with options. This trust actually must hold gold and earlier this year had more gold than the country of ENGLAND. They have been sellling it off for the last 3 months along with the US banks being short gold. I bet they were covering today. LOL
There is a shortage of inventory of gold.
Gringo- Stay away from Scottrade they are bandits and even say so in the fine print.

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wendell13 says on Sep 17, 2008, 15:55:

Buying options when volatility is sky high is a good way to lose money...you have to be very quick. One bad day and they will suck a lot of the premium out

You can be right about the direction and still lose money when the volatility comes down

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gringoloid (Trustee board) says on Sep 17, 2008, 16:03:

wendell.......when are you going to learn..........you can do a strangle option........as long as the underlying security moves in a direction........either direction, up or down, .........you make money. you can only lose if there is no volatility.

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gringoloid (Trustee board) says on Sep 17, 2008, 16:04:

i do this most of the time............but like right now with gold, i'm only going one way because i'm totally sure of it's direction.

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wendell13 says on Sep 17, 2008, 16:11:

you didn't mention a strangle or a straddle. You mentioned about buying Jan 80 calls. I will repeat. Normally buying options when volatility is sky high is very risky. This is when the pros are writing options

I can't read your mind.

I read a big investment bank had shorted gold around 900 in a big way and now were covering, hence the big rise today

When someone is totally sure about the direction of an investment is when they will take a big hit. I hope for your sake the market goes your way

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gringoloid (Trustee board) says on Sep 17, 2008, 16:21:

in this case, of the GLD, i'm totally certain that the downward momentum in gold does not have much more play........haha, i could be wrong though.

but i won't be going both ways on gold as i feel that all this money going into treasuries will stop when they see these 1954 type returns on their bonds. they're soon going to see that gold is safe also.

but believe me.........i may be in and out in just minutes, or maybe an hour. so no strangles on gold or oil. just stops. watching the screen all day, and following the momentum.

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