GLD is an ETF that buys gold. If you'd like to buy gold and sell options against it this is an inexpensive way to do it.
If you bought GLD at 92 and sold the 105 January call options you could earn a 5% premium. 100 shares of GLD is equal to about 10 ounces of gold. It's a great way to earn income on your gold holdings.
I own the raw metal and use my stock holdings like KO as collateral to sell naked call options against GLD. I also do the same thing with SLV and silver.
Try it, you'll like it.
Peter Schiff can be seen with Glen Beck Tuesday on the FOXNEWS cable channel.
Every day is Veteran's day in this home. Support our American hero's who lay suffering in hospitals and need our help. Thank them with your generous donation. And please remember the brave men and women who lost their lives fighting for our freedom.
He's one of a few that knows what's going on!
The following is from his Vlog after his CNBC appearance. Go gold. Go Peter.
Posted on GG 23-May-09 12:06 pm
Things are not going well for this economy, and with the dollar with little or no support anymore... albeit there just might be a minor bounce soon... if there's still a few people who are too gased/whacked out/loaded/IGNORANT, for lack of any more poignant terms... there's no point in fighting it people. It's going to HAPPEN. There's nothing you can do about it. Even if we impeach BO, it won't matter. He's already reversing most of his bad decisions. I didn't like 'W' either. These guys we call president are run by some seriously BIG PEOPLE with some NO CHOICE terms the POLS WILL FOLLOW! If somebody is seriously naieve about that, don't even bother going any further by mooning people because you have personal problems. You'll just expose your moronic ignorance anyway. Go ahead... if you must though. I know some of you can't help it... sooooo... give it a try anyway. But it would be helpful if you put a notation indicating your post as:
:) or :(
QWAK,axpkocop,IF you can NOT hold the GOLD in your HOT little HANDS -- YOU don't OWN GOLD! :(
What you got is a PROMISS that there is GOLD and you can GET IT :( -- LIES that actualy helps SUPRESS the HONIST PRICE that GOLD should be, in FIAT CURRENCY!
A lot of PROMMISES being broken thease days --- DISHONOR is becoming COMMON -- sad but TRUE!
If you can't hold IT -- you don't OWN IT!
"QWAK,axpkocop,IF you can NOT hold the GOLD in your HOT little HANDS -- YOU don't OWN GOLD!"
"I own the raw metal and use my stock holdings like KO as collateral to sell naked call options against GLD. I also do the same thing with SLV and silver."
Currently I don't own any GLD or SLV but I have sold puts against GLD and another gold fund. It sounds like the premise of owning the raw gold and silver and selling naked call options against the gold and silver ETFs would be appealing to you because you're able to short the ETF ponzi and own the raw metal that's in your hand.
Gold looks like it could use a short break and a little refreshment as the dollar gets ready to try getting up off the floor and try to rise up again for another feeble try. It's sick and worn out by all the pounding it's taking from the printing presses! It's ready to lay down and die. I think the $ might have caught Swine Flu! It doesn't have much room to go up very far though... a few cents maybe and then bump it's head against the ceiling at 84cents. Lots of downside momentum and plenty of room to get thrown out of Bernanke's helicopter without a parachute. Guess what happens when it hits the ground. They'll be sounding TAPS, and your bank and brokerage accounts will be paying for my gold and silver. Thanks to all who still don't get it. BO is actually friendlier to ME financially, than to those of you who have been fools by swallowing the changes that have been totally different from the original ads, but you voted for him and can't do anything about it now. Too bad, but you reap what you sow. Lots of luck... you'll need it! Tks again. :)
I bought 90% of the gold I own in 2005. I could have paid the same price for it in 1980. I was lucky on the timing.
If I sold the January 105 calls against GLD I'm would be able to earn over a 10% premium on my gold cost basis in 8 months.
Note: I've only sold options priced over 115 because I believe inflation is coming and with it a rise in the price of gold.