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What is the best and safest way to leverage an investment and gold or silver ? I do not know how to trade ? |
I have never traded options. I also would like to find good stocks to buy based on higher prices for gold and silver. Here is a thought. Buy marginal mining stocks. Their earnings and stock price will rise dramatically on any rise in gold prices. A safer approach but not so likely to score big results is to buy a stock like ABX or GG a couple of leaders in gold mining. Either approach is much much safer than buying options. Another option is to buy ABX and sell options against the position. Should yield about 12% annually at least, but it is all taxable at full tax rate. Not something to ensure best results. Frankly there isn't much of a way to make money off of current gold prices. Had you bought gold, or stock in a company that would prosper off of elevated gold prices, you would be doing great now. However, any company that will do well off of elevated gold prices will already be doing well, and thus there isn't much room for improvement, making it an unsound investment. Gold has leveled off; it shouldn't rise or fall too much in the foreseeable future. So an investment in gold or companies that prosper off of its price jump would not yield much for you. There is no safe way to leverage. Leverage is done to increase return and also increases risk. Just buy DLG or IAU - 2 solid etfs. 1 has pros do the futures while the other holds Physical gold. You cannot use "safest" and "gold" and "silver" in the same sentence. Stay away from options if you are not experienced at investing. If you don't know how, stay out. I have heard so many people promise that "gold's going to $750" and things like that, and they are rarely right. In the meantime, the stock market averages 11% a year over time. Personally, I think you can do much better in things you can understand, like stocks of companies where you like what they do. Whatever you do, study up first and then practice by making fake buys, where you pretend that you bought something but don't actually do it. Track how you do before you put real money in. the selver is more risk and more profit. |
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