I cant understand why margin buying is allowed at all. Pony up the cash or dont play. I doubt that I could get $50,000 worth of gold bullion from my local shop for $5,000 with the promise to pay the remainder at some future date when I decide to sell.
<< <i>I cant understand why margin buying is allowed at all. Pony up the cash or dont play. I doubt that I could get $50,000 worth of gold bullion from my local shop for $5,000 with the promise to pay the remainder at some future date when I decide to sell. >>
On the other hand, those darn speculators driving up the price does help offset the takedown's.
<< <i>. I doubt that I could get $50,000 worth of gold bullion from my local shop >>
And you can't get it on the exchange either, you just get some paper with a promise that if you want to take delivery later they will give you some more paper since they probably don't have the gold.
Do you use credit cards? In those cases, you are putting up ZERO and can walk out of a store with boatloads of stuff, only to promise to pay it at some later date.
At least with margin, you are putting some money up front.
Comments
A lot of margin players probably learned a good lesson on Silver in May. Doubt that traders are that margined on gold.
roadrunner
<< <i>I cant understand why margin buying is allowed at all. Pony up the cash or dont play. I doubt that I could get $50,000 worth of gold bullion from my local shop for $5,000 with the promise to pay the remainder at some future date when I decide to sell. >>
On the other hand, those darn speculators driving up the price does help offset the takedown's.
Exit bunker, enter Matrix. LOL
<< <i>. I doubt that I could get $50,000 worth of gold bullion from my local shop >>
And you can't get it on the exchange either, you just get some paper with a promise that if you want to take delivery later they will give you some more paper since they probably don't have the gold.
World Collection
British Collection
German States Collection
At least with margin, you are putting some money up front.