Stock traders

[Danny]

In those 2 months you would have made about a 2% gain. Thats great if you are only looking to protect money, but if you are looking to make money precious metals are laughable. If you can hold for the long term then stocks, especially solid financials like BoA and Citi will net you anywhere from 300 to 1000% gains within 5 years on the low end. I wouldnt be suprised to see 2000 and 3000% gains on some of these stocks, especially the FM's.

What are you talking about? Your saying a 2 % move in a future is laughable? I dont understand, thats bank to me.

For example. Just so we are on the same page.

You BUY 1 contract gold @ 950/oz. This will be about $7500 purchase. If it goes up to 969 (2% increase like you said). You will make $1900. 1900/7500 is 25% ROI. Thats pretty good if u ask me.

[BanginJimmy]

What are you talking about? Your saying a 2 % move in a future is laughable? I dont understand, thats bank to me.

For example. Just so we are on the same page.

You BUY 1 contract gold @ 950/oz. This will be about $7500 purchase. If it goes up to 969 (2% increase like you said). You will make $1900. 1900/7500 is 25% ROI. Thats pretty good if u ask me.

When you buy gold, are you buying a gold future, or are you buying actual gold by the ounce? I know nothing about the futures markets or precious metals. I am only basing that on actual gold prices.

[Danny]

When you buy gold, are you buying a gold future, or are you buying actual gold by the ounce? I know nothing about the futures markets or precious metals. I am only basing that on actual gold prices.

You are buying futures (this is how all commodities are traded) which come in contract sizes. Gold contract size is 100 troy ounces, which has a value of $95K+/-. The leverage amount of your trading account dictates how much margin (account value) you would need to purchase it (around 7500$ according to a futures calculator).

There are also mini-contracts, which make it more affordable.

Also, plenty of people aculattly buy bullion gold, or silver. Many places will sell you actual gold/silver bars for spot price plus a little. Then u get to act like a gangster and have a breifcase full of gold bars. But this is a CASH deal (or credit card lol). No leverage is available when buying bullion.