Do retail traders ever basis trade gold of platnium?

Discussion in 'Commodity Futures' started by UVXY20, Nov 15, 2023.

  1. UVXY20

    UVXY20

    If so, how is the best way, brokers, etc? Use ETC? I think IB offers physical gold addition to GC. Just doing some noobie research. Thanks.
     
  2. 2rosy

    2rosy

    does it ever move? I know gold spreads almost never move. I think it's just the lending rate
     
  3. BMK

    BMK

    Depends on why you want physical gold. If you expect to personally take physical custody of the gold, then your options are fairly limited. You will be dealing with high fees for insured transit. And unless you are talking really large amounts of money, e.g., seven figures...

    ... then you will be thought of, rightly or wrongly, as a crank who wants to have gold bars in a safe in your basement so you can trade them for food and ammunition when the zombie apocalypse happens.

    If you want to own gold or sell it short as a hedge against something else, e.g., gold mining stocks, gold futures, whatever...

    then the exchange-traded fund GLD is one way to do that.
     
    SunTrader and zghorner like this.
  4. SunTrader

    SunTrader

    Like him?

    I-was-eating-a-cookie-in-the-shower-when-I-heard-a-noise_.jpg
     
  5. maxinger

    maxinger

    GLOSSARY

    basis trade - trading strategies built around the difference between the spot price of a commodity
    and the price of a futures contract.

    gold of platinum - a type of gold that is extracted from platinum

    _______________________


    There are some traders who also do physical trading just for experience.
     
  6. Overnight

    Overnight

    At least he's maintaining good trigger discipline.
     
    Axon likes this.