I love this trade Akil! Thank you. I thought I'd mention the Jr Gold Miners Bull 3X ETF (JNUG) on this thread because it is what I typically use, and what I used here, to long gold. Besides buying gold call options, do you know of a more aggressive way to long gold other than JNUG or another 3x jr miners etf? By the way, you and I met in KC a couple years ago at the TE seminar. I was Alcindor's guest. I've been following your work from a distance since then. I'm a precious metals broker so this trade was right up my alley. Keep up the good work! Thanks again.
I appreciate your response Lanmar, but I must state the purest way to trade gold is physical gold, not futures contracts. I think you mean the futures contract is directly tied with the spot price of gold so trading a contract is a way to get perfect correlation between spot and your trade. As a hard assets broker, I assure you the paper contract does not represent a deliverable price. Premiums on deliverable metals fluctuate relative to spot and can fluctuate many percentage points depending on supply/demand of physical metal. Last week, I think the Comex supply of deliverable gold was smaller than what China consumes on a daily basis. The true price discovery of gold will shift from the US futures market to the Shanghai Gold Exchange because of this paper vs. physical difference. Akil, thanks again for your work. It makes me happy you have some physical for investment purposes. While wearing my tin foil hat, I'll ask this question...how rich is someone when they can't log onto their bank or trading house's computer system to do anything and/or when their bank or trading house says they don't have a record of how much money someone had because their computers aren't working?