5 Ways To Tackle The Gold Market

Without a doubt the most polarizing and talked about commodity is the precious metal, GOLD. For some traders it encompasses their entire portfolio, but for others it can seem quite daunting.

Next week (December 2nd @ 4PM EST/9PM GMT) our own gold bug and MarketClub co-founder, Adam Hewison will demystify this popular commodity and analyze some of the most popular ways to trade this metal.

Whether you're a veteran gold bug or looking to start trading this popular precious metal, this webinar is for you. Adam will be looking at some of the most commonly asked questions like:

- How is the spot gold price determined?
- Why are there so many ways to trade gold?
- Do some gold markets have more risk than others?
- Is there an advantage to trading a gold future vs. a gold ETF vs. a gold stock?

This webinar is completely free, but has limited seating. Click here to reserve your seat today and learn all there is to know about this important market.

We hope to see you there!

The MarketClub Team

25 thoughts on “5 Ways To Tackle The Gold Market

  1. Hey Adam: Thank you for the opportunity of webnar(first time). I would have liked to seen your "triangle" setup a trade (live) on gold Thanks for the time!!!!

  2. I'll admit I'm baffled as to how you read all of that into my comments. Run and hide? Farm? Guns n ammo? Fusion reactor? All I really suggested was a core holding that will always have value, appocolipse or not.

  3. I buy and sell on through APMEX. For gold coins, they usually purchase them at a price slightly higher than spot and they will even sell them on a credit card. They're easy to deal with and the prices are right. Only once did I deal with a local coin dealer. Not only did I get less than spot but a 1099 form as well. No 1099 form from APMEX if the transaction is under $10K.

  4. TheoryofI, you're dead wrong at #1. PM's are not universally accepted. Try the grocery store or the gas station. If you have a really large amount, a bank might be more accommodating -- to change it into fiat -- if there's still a bank. If you harbor some dream that you'll use it to buy food in a post apocalyptic time, remember, there has to be food to buy first, and if you think you'll get any reasonable amount of the current value, you're dreaming -- a loaf of bread right now is worth a microscopic, almost invisible, amount of gold -- do you think that if times are tough someone will take less than a dime-sized piece for that loaf? Which cost you what? I'll make that trade! Will they have a scale? Will they believe it's really gold without an assay? Physical is cool, but it's just cool. Negligible carrying costs? Only if you're the only one who knows, else it better be well guarded -- that's expensive. And you'll brag, you are already, so....you'll need to hide and guard the stuff.

    Counterparty risk? You have to be able to sell/trade it to some counterparty or it's just a useless lump of metal. Unless you need it in your physics lab or something.
    (I use it here as an integrating neutron output monitor for my fusion reactor -- transmutes it, though, to mercury in microscopic amounts, kind of the wrong way to do the alchemy)

    I'm not saying there's no reason to have some physical, not hardly. But thinking it's end-all and be-all is not very rational. If you're thinking hedge against truly bad times, other things, like food....might do better, and at less upfront cost besides -- other people might mention ammo in the same context. When you're starving, I promise food will seem more valuable than the barbaric relic. A rifle might get you a deer in the boonies, gold won't.

    Me I just go long when it's going up, and get out otherwise -- Market Club calls it pretty well. This doesn't usually seem a wise one to short...but it depends (like everything else) on *other* humans perception of current value, it's not useful in your pocket -- you have to turn it into what you need to get it to be useful to you.

    I don't see gold alone as that great a hedge against anything but medium-inflation in an otherwise-normal world -- if things get as bad as some gold bugs fear, they need to think it through (much) more fully -- why would the decline stop at a convenient point? For the rest, I bought a farm, tools, books, food, ammo, all of which I can have fun with now, and could be really handy later on. Meanwhile, living on a nice farm in the boonies has it's own rewards, dividends if you will, in health (physical and mental), and general quality of life. Nice neighbors count in there someplace, people who will lend a hand in need, and that goes both ways.

    See, if you're in Zimbabwe, and have gold, you can travel to someplace "normal" and probably should as you'll get killed over it otherwise. What if there is no such place as the world is ever-more globalized? That's where we are heading, you know. You could run and hide on a desert island. But then what good is the gold?

    Too much "religion" around this. Remember quite a lot of gold was taken off people who were killed over it. Didn't help them much. Just trade, be happy.

  5. I recommend good sites like this one when I post elsewhere.

    A few of the people I’m also reading now are:

    Neil Garfield & his Livinglies site that is tracking the ongoing legal action against the Wallst’s fraud machines.

    The boys over at Zerohedge are also doing some fine work.

    And I like the campaign to break the Wallst financial terrorist banks/insur co’s that Max Keiser’s site has up & running currently. Google the phrase: Crash JP Morgan, buy Silver

    Alex Jones & his Infowars site is also right at the tip of the spear chasing those Jihadist Wallst bankers down.

    There’s plenty more, but that’s enough for now.

  6. Adam,

    Algo chasers would have been better off to have dumped AAPL for SLW 2 years ago, but I can tell you know the point TheoryofI was making.

    TheoryofI points 2,3,4,5,6 are very important points that need addressed.

    This ongoing fraud, (RICO), by the Wallst Banks/Insurance co’s & their DC puppets has to be stopped as soon as possible.

    This is a nice website, but it seems geared more for short term oriented traders.

    Yet still others of us are forced into this market because of Wallst/DC’s total corruption, so we read these sites.

    There are currently no corrupt markets for us to trade in.

    When we were kids the US Ministry of Truth told us it was the Commies we should worry about, this was at the same time the Fascist were taking over in the US/elsewhere that Eisenhower warned us of.

    For anyone watching the mile markers of history, they will remember Nixon taking us off the gold standard & they’ll remember Paul Volcker bailing out the corrupt Banks/Insurance Co’s at the expense of the public back in the late 70’s.

    And here we are again, making the same mistakes as Volcker did back then by bailing out the corrupt Wallst banks/insur co’s

    Well, in one of the most profound turnabouts of thought of this era was the comments made earlier this year by Paul Volcker & his European counterpart. Paraphrasing them loosely they made the public comments that Banks & Insurance co’s are “Socially Useless”.

    Further that Demand Deposit Banks should by completely separated from Commercial Banks & Insurance Co’s completely separated from the former 2.

    That basically public bank industry should be “Localized” & only needs a Paper Boy to stop by occasionally to stuff the ATM full of cash & back office system analysts/programmers to keep the software up & running.

    Anyway, if traders like the way they & their family/friends are being groped at the airports & elsewhere, just keep chasing algos & don’t even bother to buy a single silver coin or anything else in protest to all these related conditions.

    Thanks for the place to get that rant off my chest Adam, best wishes. 😉

    1. Lowervolts,

      Thank you for your feedback I appreciate your comments. Sometimes it's good to get things off your chest.

      All the best,

  7. Hi Adam,
    Yes, you are quite right, as a single issue Apple has done very well and unfortunately among the thousands of stocks I wasn't prescient enough to cherry pick that one. But Apple is competing in a volatile, rapidly changing and narrow market where a new innovation could quickly make Apple products obsolete. Conversely, Apple could be the innovator and redouble the gains, who knows? My point was simply that there is always the counter-party risk with every security, a risk nearly non-existant with gold and silver. Though highly improbable, like many other companies big and small, Apple could go to $0. Not so for gold or silver.

    1. TheoryofI,

      Thank you for your feedback. I don't disagree with you, stocks can go to zero. However, I have never seen any commodity market go to zero. There is always a value for a commodity somewhere in the world.

      All the best,

  8. Hi Adam,

    I'm at work on 12/2/10 4PM EST--unlikely that I'll be able to listen in to webinar. Will it be available for review on Market Club?



    1. Joshua,

      Thank you for your feedback.

      I expect we will be rebroadcasting this webinar in its entirety sometime later in December or January.

      All the best, and thank you for using our website.


  9. 1. Gold and Silver are a universally accepted medium of exchange and store of value above anything else, and have been for 4000 years.
    2. Unlike irredeemable fiat confetti they can not be printed.
    3. There is no counter-party risk -- Ask Enron or GM or Lehman Bros. stockholders about counter-party risk.
    4. They are not debt instruments -- all paper money and securities, insurance policies, credit agreements and the like are debt instruments and carry the risk of failure or default.
    5. Other than the current crop, every fiat currency in history has failed and become worthless -- ask the people of Zimbabwe.
    6. Gold and silver will fluctuate in value, but what doesn't? The U.S. dollar has lost 97% of it's value in less than 100 years. Are stock, bond or real estate prices the same as they were a month or a year ago?
    7. Gold and silver will never be worthless. Not even real estate can qualify to make that claim unequivocally -- ask the people who owned property on Mt. St. Helens.
    8. Once safely stored, Gold and silver have negligible carrying costs, no repairs and maintenance costs, no annual tax penalty, and short of a massive disaster, cannot be destroyed.
    9. My holdings of gold and silver have appreciated well over 300% since 2003 -- nothing else has come close.

    Still think there are no good reasons to have a core holding in gold and silver?

    1. Theoryofi,

      Thank you for your feedback.

      Looking at #9 Apple has appreciate 1,000% during the same time frame.

      A great comment.


  10. Buy physical and take delivery a MUST for all the reasons stated by previous posters. It has kept me from selling unnecessarily. It's my retirement and savings.

    As to counterfeits, 1oz rounds of Maple Leafs, Amer. Eagles etc. are not worth the effort. 100oz bars is another matter. But if purchased from reputable dealers who've been in the business for at least 25+ years.

    Do a background check on Google w/ name of company +fraud* +investigat* +"consumer protection".

    I did so with one outfit and found out it was under investigation by the state's Attorney General's office with over 75 complaints in a class action suit under the state's consumer protection statutes.

  11. Soon under Health Care "Reform" provisions buyers of physical gold over $600 will receive a 1099. Also remember FDR confiscated all gold and I fully expect another "crisis" scenario when the government will (try to) do it again. GLD is not necessarily the holder of your gold and whoever does actually have it is not legally required to make it available for confirmation. I am doing quite well with a few junior miner stocks with great margins big reserves and lots of room to run or be candidates for M&A. I also like silver which can be purchased under the radar and more easily tradable for small items like food should it ever come to it.

  12. I recently made a purchase from tulving.com. Free shipping and insurance, they paid the wire fee on their end, junk silver was sold at spot, my bullion was $.39 over spot, they list their buy back prices along with sell prices and pay for shipping and insurance to return it to them. Shipping was really fast too. So far, they seem like a really good co. to do business with.

  13. And how about Uranium (for a future show)?
    One of the hottest sector for 2011 specially after China ordered more U from Cameco.

  14. NEVER a retail store or pawn shop to buy or sell physical gold or silver. One must shop around very carefully for prices. Know the spot today, check KITCO charts free online info, and maybe get it right there in their "bullion store." And sometimes I can do even better with a local guy who has been in the business 30 years, very fair commissions (no shipping or insurance). Not to shop carefully is clumsy (and I've failed to do that, also).

  15. There is something to be said for purchasing shares of high-cost producers, especially those that are likely to have increasing production over the next several years. Their earnings leverage may be several times that of the gold/silver price. If one were to take delivery of precious metals, coins may be a better option than bullion. There have been some "bullion" bars that are plated with the precious metal, but otherwise contain mostly tungsten - which sells by the pound. Coins are more difficult to counterfeit, and the penalties are greater.

  16. If you buy gold or silver from a retail store or pawn shop you will get the worst possible spot price, sometimes paying over 100% more than the metal is worth. If you than decide to sell the item, again you will get ripped off from the same people with another 100% loss.
    I think that for the small investor the only way to invest in metals is via the stock or commoditees markets.
    Buying a gift of a precious metal for a loved one is a gift and nothing more and will probably never be sold anyway. The key word here is gift and not an investment, all this is my opinion for what it is worth.

  17. Seems to me that the greatest advantage of holding physical, is that you won't panic and sell it on dips. If things get so bad that "paper physical" PM's fail, then you'll have a lot of other concerns that will swamp the ones usually touted by physical holders. If the "system fails" then what good is gold if there's nothing to buy with it? Seems to me that showing it for trade would just paint a target on your back. After all, when you do finally sell physical, do you not have to take a bit of a hit merely to prove it is the real thing again? So while it's nice to have to look at, it's for very long term holders only, not those who play the swings in this twitchy market, or so I believe. But it is nice to have some to admire, and in my case, use in the physics lab.

  18. Put Chase and HSBC out of manipulating the Gold and Silver market. Buy and take delivery, buy an ounce of silver and gold and give it as you Christmas present to your loved ones. Do the RIGHT thing, and you will find the free market the way it ought to be.

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