Another way to exploit the movement in gold is to buy or sell futures. While the value of the position may be cheaper to take delivery then most people realize, note that if you are buying the future you are paying a premium of time which is a degrading asset. Therefore, if you decide to short the futures you’ll be to sell the time premium and collect the value of that degrading asset. Be careful though (besides the fact that it requires large amounts of cash reserves), there could be substantial potential losses that can exceed your initial investment. While this is an option we want you to be aware of, it is not for the faint of heart. Please do your own homework to educate yourself more thoroughly on this opportunity. We like to suggest hypothetically trading before putting real money at risk.
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