Our Call Option Strategy

SPDR Gold Trust ETF is the most actively traded call option on the CBOE only a month after the option started trading. Options in the gold ETF are allowed to trade in the US as the fund holds physical gold.

We were delighted when option trading began in our favorite precious metal investment vehicle as it will allow us to use our much favored source of added income in these uncertain times.

Ever since we began to feel that the stock market was overheating in the face of all the economic evidence that it was due a fall, we have been active in trading covered calls.

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Investing in Precious Metal Index Trackers

There are two ways to invest in index trackers – Mutual Funds and ETFs.

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The VIX Index

We have been asked by a number of our readers to explain the VIX Index after our Gold” target=”_self”>article on future gold direction as a result of this week’s stock market turmoil so here goes.
 

 The index is the ticker symbol for the Chicago Board of Exchange (CBOE) Volatility Index.
 

The methodology uses the implied volatilities of the options of a range of the   components of the S&P 500 calculated from both calls and puts on a daily basis.
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What are Investment Trusts, Mutual Funds and Unit Trusts?

An Investment Trust is a company with a stock exchange quote that invests its shareholders money in a portfolio of shares in other companies.

In effect they are collective investment funds with a fixed capital and a fixed number of issued shares that are traded on a stock exchange.

As they have a fixed capital they are known as ´closed end´ trusts to distinguish them from Mutual Funds/Unit Trusts.

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Precious Metal Mutual Funds

If you believe that gold.preciousmetalinvestment.com” target=”_self”>gold and other precious metals will continue their current bull run for a good while yet but have limited funds to invest then mutual funds specializing in this market could be the answer.
 

Limited money to invest limits the spread of risk

 

It is not practical to share limited available cash between a number of companies in this or any other sector of the stock market in order to lessen the chances of a catastrophe occurring to one of your few stock picks.
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Investing in Jewelry

To the serious and single-minded investor Gold, Platinum and Silver jewelry items are unlikely to come near the top of the potentially profitable opportunities that he or she will research.

It is reasonable to propose, that before venturing into this market, a tremendous amount of investigation should be carried out and knowledge assimilated that is not relevant to other investment vehicles.

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What are ETFs?

ETFs are Exchange Traded Funds

An ETF consists of a group of securities, commodities or derivatives that are traded as shares on a stock exchange.

Stock market indexes, for example the S&P 500 or the FTSE, commodities such as oil or gold, or a specific market sector such as aviation, energy or utilities can all be traded as ETFs

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What Is An Option?

An Option is a contract giving the buyer the right, but not the obligation, to buy or sell the underlying asset (a stock or index) at a specific price on or before a certain date (listed options are all for 100 shares of the particular underlying asset.)

An Option is a security, just like a stock or bond, and constitutes a binding contract with strictly defined terms and properties.

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How To Invest in the Precious Metals Market

The most straightforward route into investing in the precious metals market is to buy shares in mining companies.

Dependent upon the investors’ attitude, to risk putting money into mining stocks can cover virtually the whole spectrum from reasonably low risk to the most speculative of investments.

Bear in mind that in most cases, established mining companies will operate several mines extracting a principal metal and, as a by product, one or often more metals.

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