Buying gold coins/bars with CC
Aug 8, 2011, 4:24 pm
#76
Join Date: Sep 2009
Posts: 1,758
2% spread? And you're actively trading gold? Today's spread on GLD was less than 0.12%. Am I to infer that you're trading the physical metal itself? My God!! That is rather boneheaded. Why would you not use the ETF if you're indeed actively trading the market? It seems that your common sense you speak of is not all that common... Thank you for this example.
Do you have any idea what an arbitrage opportunity is? It seems you are clueless. You ever try buying GLD with a CC? How big of a spoon do I need to get out?
I guess we know who the real troll here is!
Aug 8, 2011, 4:33 pm
#77
Join Date: May 2008
Programs: AA PLT 2MM
Posts: 2,026
My question to him is, if he's trading the gold -- buying and selling and not keeping his positions for long periods of time, why he would not use GLD which has far less spreads to contend with (and of course no need to worry about physical delivery, insurance fees, and overall amount of time it would take between being able to change positions).
There's gold that I 'hold', as the insurance policy against Ben Bernanke and Co, the stuff that get's locked away in secured storage -- what you were speaking of. A position I would not want to trade in and out of, not only due to fees, but also for the risk of being without my 'insurance' when the need arose. Then there is GLD, that is something I do trade once and a while since I wouldn't want that as insurance.
If this guy is 'trading' the physical metal, I guarantee he's making the bullion dealer more money than he is himself. I wonder if he'll next mention how he buys pre-1933 gold for the 'extra value of that gold'. Swiss America and Lear Financial will love him.
Aug 8, 2011, 4:34 pm
#78
Join Date: May 2008
Programs: AA PLT 2MM
Posts: 2,026
Now who has a comprehension problem. I never said I was paying a 2% spread.
Do you have any idea what an arbitrage opportunity is? It seems you are clueless. You ever try buying GLD with a CC? How big of a spoon do I need to get out?
I guess we know who the real troll here is!
Do you have any idea what an arbitrage opportunity is? It seems you are clueless. You ever try buying GLD with a CC? How big of a spoon do I need to get out?
I guess we know who the real troll here is!
Aug 8, 2011, 4:47 pm
#79
Join Date: Sep 2009
Posts: 1,758
You are joking, right? We all know you cant buy an ETF with a CC. I wonder why somebody would buy physical gold when the GLD would be so much easier. Is the light bulb going off yet? Do you even look at the title to this thread?
Aug 8, 2011, 5:03 pm
#81
Join Date: May 2008
Programs: AA PLT 2MM
Posts: 2,026
You just mentioned it not more than 3 posts ago... Thus my statement about you 'making stuff up'
Why... didn't you just elude to the fact that you were flipping the physical gold? Here's some recent history of you showing off how 'smart' you are by interjecting yourself into yet another conversation:
HINT: First point was: 'It's not so easy to make money on physical gold as with an ETF'
Thankfully these threads maintain a history for all to see how you're dancing around in circles. Perhaps one day we'll figure out what you're actually trying to say.
Oh, and deferring back to the thread title after you've already derailed the topic from that is not the best support for your argument (whatever that may be at this point).
This is (best I can tell) a fairly reputable dealer:
https://online.kitco.com/
You will notice that there is about a 5% buy/sell spread on a common coin like the 1 ounce maple leaf. Also - if you manage to make money - you'll have to pay taxes (28% since gold is a collectible). Robyn
https://online.kitco.com/
You will notice that there is about a 5% buy/sell spread on a common coin like the 1 ounce maple leaf. Also - if you manage to make money - you'll have to pay taxes (28% since gold is a collectible). Robyn
You are correct on both points. It's not so easy to make money on physical gold as with an ETF. And, believe or not, there is a huge risk that gold could crash at any time. In a general market downturn, gold could get hammered too because it is being used to store huge amounts of liquid capital "safely" and those players will one day need their cash again.
Thankfully these threads maintain a history for all to see how you're dancing around in circles. Perhaps one day we'll figure out what you're actually trying to say.
Oh, and deferring back to the thread title after you've already derailed the topic from that is not the best support for your argument (whatever that may be at this point).
Aug 8, 2011, 5:10 pm
#82
Join Date: May 2008
Programs: AA PLT 2MM
Posts: 2,026
Aug 8, 2011, 5:14 pm
#83
Join Date: Sep 2009
Posts: 1,758
The reason someone buys physical gold instead of GLD is because one can be bought one with a CC and the other cannot. I cant believe someone could be so (insert your word of choice) to not understand this. The trick is to find an arbitrage opportunity where it makes you money. Take the blinders off and open your eyes.
Aug 8, 2011, 5:20 pm
#84
Join Date: May 2008
Programs: AA PLT 2MM
Posts: 2,026
The reason someone buys physical gold instead of GLD is because one can be bought one with a CC and the other cannot. I can’t believe someone could be so (insert your word of choice) to not understand this. The trick is to find an arbitrage opportunity where it makes you money. Take the blinders off and open your eyes.
Aug 8, 2011, 5:32 pm
#85
Join Date: Sep 2009
Posts: 1,758
You can buy physical gold with a CC. Fact!!!
You can sell 1oz eagles for 35-45 over spot. Fact!!!
There are arbitrage opportunities out there to exploit this. Fact!!!
Make up anything you want but you cant change the facts!!!
Aug 8, 2011, 5:57 pm
#86
Join Date: May 2008
Programs: AA PLT 2MM
Posts: 2,026
You were the one who said you could, not I -- Fact!!!
Never argued that point. But, that's not even what we were arguing in the first place -- Fact!!!
Sure you can, again, not a point we were arguing -- Fact!!!
You know, now I am getting curious. First you eluded to the fact that you were buying gold on the lows, and selling it on the highs. Even went so far as to claim people who had more long term plans with gold stupid. This would not just include me, but, it would also include Robyn, and other fellow FTers. In fact, it would also include Warren Buffet if you believe that 'Buy and Hold' to be a poor strategy.
Nonetheless, not once did you qualify that your active trading was finding arbitrage with using a CC on the physical metal. But if this is the point you're making there's probably only one card out there that will 'temporarily' put you ahead if you use CC to do this, and, if indeed you mean this specific card where the 5% on everything lasts only 6 months. Nonetheless, this still requires you have a bullion dealer who has margins thin enough, and doesn't hammer you too much percent to make it worth while (i.e. spread + cc fee < 5%). If you're trying to say you have some other form of arbitrage where you've buying physical gold from one source and selling it immediately later at a huge profit, I call BS. Gold is still a highly efficient market. And finding some sucker once and a while on eBay who overpays for your coin does not a reliable arbitrage opportunity make.
But, of course you actually never say 'anything' other than spew of insults to people and qualify it with some secret strategy that is so amazing that only you know about it. I must now merely ask the question that if there are super secret amazing deals that you think only you know about, why even try to get the 'mundanes' interested in them by eluding to them in your endless spewing of 'one-upping' statements to people? Why not just enjoy the fruits of your highly successful labor? And leave this apparent low value forum from which you've apparently never learned anything, since you already know everything, alone?
Never argued that point. But, that's not even what we were arguing in the first place -- Fact!!!
Sure you can, again, not a point we were arguing -- Fact!!!
Nonetheless, not once did you qualify that your active trading was finding arbitrage with using a CC on the physical metal. But if this is the point you're making there's probably only one card out there that will 'temporarily' put you ahead if you use CC to do this, and, if indeed you mean this specific card where the 5% on everything lasts only 6 months. Nonetheless, this still requires you have a bullion dealer who has margins thin enough, and doesn't hammer you too much percent to make it worth while (i.e. spread + cc fee < 5%). If you're trying to say you have some other form of arbitrage where you've buying physical gold from one source and selling it immediately later at a huge profit, I call BS. Gold is still a highly efficient market. And finding some sucker once and a while on eBay who overpays for your coin does not a reliable arbitrage opportunity make.
But, of course you actually never say 'anything' other than spew of insults to people and qualify it with some secret strategy that is so amazing that only you know about it. I must now merely ask the question that if there are super secret amazing deals that you think only you know about, why even try to get the 'mundanes' interested in them by eluding to them in your endless spewing of 'one-upping' statements to people? Why not just enjoy the fruits of your highly successful labor? And leave this apparent low value forum from which you've apparently never learned anything, since you already know everything, alone?
Last edited by thehawk75; Aug 8, 2011 at 6:04 pm
Aug 8, 2011, 6:28 pm
#87
In memoriam
Join Date: Aug 2005
Location: Near Jacksonville FL
Posts: 3,987
STOP!!!
Can we all agree that whether or not it makes sense to invest or trade in gold - or how to do it - that what the OP asked about buying/selling physical gold on a credit card to try to rack up miles or points makes absolutely no sense at all. Raise your hand if you disagree. Robyn
Can we all agree that whether or not it makes sense to invest or trade in gold - or how to do it - that what the OP asked about buying/selling physical gold on a credit card to try to rack up miles or points makes absolutely no sense at all. Raise your hand if you disagree. Robyn
Aug 8, 2011, 6:38 pm
#88
In memoriam
Join Date: Aug 2005
Location: Near Jacksonville FL
Posts: 3,987
I live in China but am a US citizen - I want to purchase some gold via CC, pay the fees (which are worth it in my situation), and convert it to cash or other securities ASAP.
Anyone who can let me in on a good way to do this remotely? Is there someone legally trustworthy in the US (such as a bank - insert joke here) who can take delivery of the gold and convert it on my behalf?
I've asked my banker/broker but he won't touch it because the bank only deals with non-physical security ownership.
Anyone who can let me in on a good way to do this remotely? Is there someone legally trustworthy in the US (such as a bank - insert joke here) who can take delivery of the gold and convert it on my behalf?
I've asked my banker/broker but he won't touch it because the bank only deals with non-physical security ownership.
.If you are planning to buy and hold - I would buy through a reputable dealer and take physical delivery. If you want to trade - I'd use the GLD (although I don't know if you can access that security and what any buy/sell/tax situations might apply if you live in China - even though you're a US citizen). Robyn
Aug 8, 2011, 7:06 pm
#90
Join Date: Dec 2009
Location: Between EWR & ABE
Programs: OnePass, AAdvantage, SkyMiles, PriorityClub, HHonors
Posts: 401
STOP!!!
Can we all agree that whether or not it makes sense to invest or trade in gold - or how to do it - that what the OP asked about buying/selling physical gold on a credit card to try to rack up miles or points makes absolutely no sense at all. Raise your hand if you disagree. Robyn
Can we all agree that whether or not it makes sense to invest or trade in gold - or how to do it - that what the OP asked about buying/selling physical gold on a credit card to try to rack up miles or points makes absolutely no sense at all. Raise your hand if you disagree. Robyn