Gold Prices Tank on Moves to Curb Inflation

[japes]

Find with me, this just means I can buy a little more with my next paycheck :)

http://finance.yahoo.com/news/Gold-Prices-Getting-tsmf-1832506018.html?x=0&sec=topStories&pos=main&asset=&ccode=


NEW YORK (TheStreet ) -- Gold prices were tanking Friday as central banks in emerging markets took steps to tame inflation and Federal Reserve Chairman Ben Bernanke raised his U.S. growth forecast.

[Seraphim]

January to mid March is consolidation season. Sideways with downtrend action is healthy. In fact, I'd suggest it is NEEDED right now. I am completely OK with speculators beign shaken off, dropping the price a bit. Saves me money when/if I buy some more before the next leg up.

[cubical]

oh no! should I sell????

I actually just bought some SSRI Jan 2012 calls a minute ago.

[torchbearer]

time to buy.

[japes]

I actually just bought some SSRI Jan 2012 calls a minute ago.
How do you buy gold "calls" (I'm ignorant, I know)? Do you end up with physical gold when it's all over? I'm a noob at this and normally buy from places like APMEX and have gold shipped to me. I only want physical gold at this point. But right now APMEX is way over spot from what I can see and I can't really "buy on the dip" like I can with stocks.

[cubical]

unless you have a ton of money you won't be able to buy physical gold in the commodities markets. But you can buy calls on gold stocks. You can do the actual metal though SGOL or individual mining stocks. Is your question how to buy a call or how to receive physical metal?

[japes]

Is your question how to buy a call or how to receive physical metal?

Well, the whole thing is a bit confusing to me. I understand what calls are and I understand how to buy physical PMs (through APMEX). But when it comes to buying PM stocks it's not really clear to me how it works. Let's say I decide to exercise my options for some gold stock. Can I convert those stocks to gold and have physical gold sent to me? Or is this all just on paper?

[ctiger2]

Freedom's on sale!

[cbc58]

this correction probably has more to do with the dodd-frank rules kicking in regard commodity trading buy/hold limits... don't you think?

[cubical]

Well, the whole thing is a bit confusing to me. I understand what calls are and I understand how to buy physical PMs (through APMEX). But when it comes to buying PM stocks it's not really clear to me how it works. Let's say I decide to exercise my options for some gold stock. Can I convert those stocks to gold and have physical gold sent to me? Or is this all just on paper?

No, its all on paper. You can't receive anything physical from stocks.

[osan]

Tanking? Last I heard, about 2PM, gold was down about $30 - not exactly what I would call tanking.

This could get interesting.