Gold Staying Above $700
Gold continues to romped. It is hanging above $700, and I expect $800 to be easily passed before the end of the year. The 24-hour high was $725.90 at 9:21 this am (NY) and the low was $699.50 yesterday at 2:19 pm. Now it is $720.10. Silver is $14.94 pushing for $15.
So called "corrections" have thus far been momentary and short. It is rare for even gold to move up so rapidly without some type of larger correction. I see any as an opportunity to buy more. I bought CGDF this morning as a speculation (Paid 2.33 and it promptly dropped to 2.20, as usual). You might look at it.
DROOY is up to 1.85, so my GTC buy at 1.45 is very likely to die a natural death without being executed.
If you own gold stocks, or any other stocks which have options, there is a way to profit without selling your stocks. You can sell CALL options against the box (putting up the shares you have on hand). You will receive cash in your account for the CALL options and then hope they expire before they are executed. Always try to sell options with shorted expiration dates with strike prices (the price at which they could be executed - calling for your stock) that are high enough that you would be pleased to sell at the strike price. If the options are executed, your stock will be sold for at the strike price. If they expire without being executed, you can do the same thing over and the cash you received for the sale of the options is yours free. This is a technique which has little risk and gives you instant cash to use.
If you are worried about the rapid runup in the price of gold and mining shares, you could put trailing stops on some of the shares. I am not now using the stops. If you do, I would suggest you leave a lot of space >> perhaps up to 25% trailing stops.
The following quote was contained in GATA communication this morning. It may or may not be It correct. I do not know. "It is our understanding that long-term gains in the gold (silver) ETFs would be taxed as collectibles at 28 percent, according to the gold ETF prospectus. However, Ian McAvity pointed out that Central Fund of Canada (CEF) is considered a passive foreign investment company with shares not convertible into bullion. CEF is believed to qualify as a PFIC to enable the 15 percent capital gains tax treatment, which can be an important factor for investors."
Best to each, Doug
So called "corrections" have thus far been momentary and short. It is rare for even gold to move up so rapidly without some type of larger correction. I see any as an opportunity to buy more. I bought CGDF this morning as a speculation (Paid 2.33 and it promptly dropped to 2.20, as usual). You might look at it.
DROOY is up to 1.85, so my GTC buy at 1.45 is very likely to die a natural death without being executed.
If you own gold stocks, or any other stocks which have options, there is a way to profit without selling your stocks. You can sell CALL options against the box (putting up the shares you have on hand). You will receive cash in your account for the CALL options and then hope they expire before they are executed. Always try to sell options with shorted expiration dates with strike prices (the price at which they could be executed - calling for your stock) that are high enough that you would be pleased to sell at the strike price. If the options are executed, your stock will be sold for at the strike price. If they expire without being executed, you can do the same thing over and the cash you received for the sale of the options is yours free. This is a technique which has little risk and gives you instant cash to use.
If you are worried about the rapid runup in the price of gold and mining shares, you could put trailing stops on some of the shares. I am not now using the stops. If you do, I would suggest you leave a lot of space >> perhaps up to 25% trailing stops.
The following quote was contained in GATA communication this morning. It may or may not be It correct. I do not know. "It is our understanding that long-term gains in the gold (silver) ETFs would be taxed as collectibles at 28 percent, according to the gold ETF prospectus. However, Ian McAvity pointed out that Central Fund of Canada (CEF) is considered a passive foreign investment company with shares not convertible into bullion. CEF is believed to qualify as a PFIC to enable the 15 percent capital gains tax treatment, which can be an important factor for investors."
Best to each, Doug
posted by Doug @ 7:54 AM
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