Ever heard of a UBS Gold Key?

[Standing Like A Rock]

http://keyinvest.ibb.ubs.com/documents/brochures/goldkey_en_CH.pdf

It is interesting. From what I gather, every dollar the price of gold goes up, you get a $10 return, and if the price goes down, you loose $10 for every dollar.

What are y'alls' thoughts on this?

 

[thegoldview]

I think it's terrible investment product. The life of the key's are 3 months. So unless you have crystal ball on what the banks and the government are going to do, I would personally stay out of it. LEAPS in my opinion are better since they allow for a much longer term investment strategy.

Remember how wrong Peter Schiff was in 2008. It's incredibly hard to predict short term moves in the market.

 

[cubical]

open an account at oanda, put in 1300(or whatever the price of gold is) and buy 10 units of XAU. if gold loses 10% you will have 0, if it gains 10% you will double your money.

 

[thegoldview]

cubical that's pretty high risk unless you have experience in technical trading. Gold could in the short term drop 15 percent then bounce back easily. Making that kind of bet is gambling on when certain entities and countries are going to enact certain economic decisions and a few other variables. But hell if you've got great timing, spin the wheel!

 

[cubical]

im not saying everyone should do it. I am saying that it is the same thing as making or losing $10 for every 1$ move.

 

[thegoldview]

re:Cubical fair enough. I just didn't want anyone thinking it was a good idea unless you really know what your doing. Which most people don't!