You should buy a dozen GCZ9 1200-1500 gold call spreads with your 23K... If gold expires at 1500 or higher on November 23rd 2009, you will be worth 360K..
I second the comments from texrex. One key benefit of owning physical gold is that there is no need to worry about the counterparty risks associated with owning derivatives such as gold ETFs and/or gold futures.
I found it. About 19.50 per spread which would be a debit of the full $23,000 and change - the full amount he wants to invest in coins Say gold reaches just reaches $1200, but no more the whole $23,000 is lost. Not for me and not insurance - a bet. But, you know, some people get it right with these kind of bets.
No..it means that it costs $1,950 per spread, each with the max earning potential of $30,000 (less 1,950 plus juice)....Max loss is the $23,000...a purchase of the physical will not result in total loss, of course... But the leverage is the story.. if you buy the physical, at $850/oz, you can buy 27 oz of gold... if you do the spread above, you buy 12 spreads and are leveraging 1200 oz of gold... A move to $1500 / oz at Dec 09 expiration means that your physical is now worth $40,500.. the option spread would be worth $360,000 Old saying: "Those who got gulions don't buy bullion"