What do you think about buying options in gold, silver and other precious metals?
Dear Sarah Weissbard,
Options provide terrific leverage and the opportunity to make great profits, but because the odds are against option buyers (three out of every four expire, worthless) I do not encourage purchasing options in precious metals. Instead, I prefer to hold gold and silver in my possession for use as a hedge against inflation and when the economy collapses and gold and silver is used for barter. The only exception is the Perth Mint. The Perth Mint is located in Australia. It is a 100-year-old mint owned by the government of Western Australia. In the Perth Mint Certificate Program bullion can be purchased at the mint’s spot market ask price with no markup. There is a service fee and administrative fee, but storage is free. Safety is assured because the metals remain on site and cannot be lent out.