Glazer: All That Glitters is Not Golden When it Comes to Trading Gold

There’s Gold in them there hills, was the battle cry in the mid 1800’s for people to go to California, pick up some nuggets, get rich and end all of their problems…

At that time gold was under 20 bucks an ounce, now its $1,700 an ounce.

And with what looks like stock market crash number three of the decade – and who knows how bad this one gets? – once again, it’s all about gold.

Hearne ADVISED ME NOT TO DAY TRADE GOLD TWO YEARS AGO.

I didn’t listen. I didn’t know what the hell I was doing. I just knew gold and oil at that time were the plays. Gold was jumping between $880 and $1,000. I was in LA and day trading while working on a sports film. Oh yeah, with my big $15,000 dollar investment I was up 13 grand in two days. How dumb was Hearne?

Well, two years and change later, I’ve lost about 40 grand. HOW CAN YOU LOSE MONEY ON GOLD WHEN IT’S NEARLY DOUBLED IN THAT TIME FRAME?

Because I day traded.

And that means its covering all those ups and downs.

So how do YOU TRADE GOLD? Well, to me the safe way is go to Precious Metals on Metcalf and buy some ounces or a bar at the market price (he will you charge something over market for a profit but not too much).

That is the safe, smart way. And yes you should buy gold if you can afford it.

Likely gold is on the way to $2,500 before Xmas. And maybe $3,000 to $5,000 an ounce in two years. It sure looks possible. Even investment guru Jim Cramer thinks so – he says over $2,000 an ounce for sure and soon.

Doing futures is where the big money is.

How much is a gold contract? First you have to open an account with a solid company. There are several, ask a good broker who he likes. You just have to have enough margin money in your account to cover the downside of your buys.

It works like this; you buy one contract of gold (100 ounces) for the market price of $1,770 and it earns you $100 a point if it goes up. Or costs you if it goes the other way. So if it climbs to $1,780 on paper you made $1,000 dollars.

However there’s a down side – and boy did I find that out way too often.

It can go down 100 points as well. So if you have say two contracts at $1,770 and you put a STOP LOSS ORDER in at say $1,750 per contract (meaning if gold falls 20 points even momentarily), you lose that 20 points or $2,000.

That’s why trading futures is dangerous. But it pays so well when things go your way.

You need a lot of money to back you up, like say $30,000 per contract in your account. Thirty G’s gives you 300 points to play with. Can you imagine having five contracts the last month going up almost daily? You’d have made well over $100,000. Unless you’d guessed wrong and thought the market had topped. Then you’d be facing a $100,000 loss.

So my philosophy is, just buy and hold. Don’t day trade, sit on it. Or as Hearne told me, just buy the gold and put it in your bank box.

Good hunting.

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22 Responses to Glazer: All That Glitters is Not Golden When it Comes to Trading Gold

  1. Henry The Sports Czar says:

    Great Explanation Guys
    Thank you for that. Gold is going nuts. Everyone wants some, Me included.

  2. KU Forever says:

    I Lost My Ass in Oil
    You lost in oil, I did the same thing with Oil. Lost 50 grand in two weeks. You said it sit on the gold.

  3. Jeff Spero says:

    Should Have Listened To Hearne
    He knows, you clearly didn’t. Too bad, you could have made a nice score.

  4. bschloz says:

    shiny rocks
    Hearne is right….gold is something you have. Whe margin calls come gold oil silver will get hammered.
    Europe dragging us down….treaurys epic historic rally……we are stalling out with no leadership and few tools left. wow
    to big to fail to big to bail

    Investor = Underwater Trader

  5. smartman says:

    I’m RICH BITCH
    Been purchasing Kruggerands monthly since 1979. Got every damn one still!

  6. the log says:

    where do live again Smartman?
    Thanks Glaze

  7. smartman says:

    @the log
    Follow the smell of fresh cut lumber, drywall mud and paint. Listen for the sound of the wet saw. You will find me there.

  8. Robertoe says:

    Don’t trade futures
    Hearne’s been there. He knows. So have I.

    Don’t trade futures. The leverage will kill the little guy….

    Spoken as a former founder & owner of an Energy & Oil Introducing Brokerage firm at the KC Board of Trade.

    Smartman earns his moniker. He’s doing it right. Gold and silver coins over the long haul although I’m not sure we’ll get past this short haul in tact.

    http://www.zerohedge.com/news/must-read-ubs-andy-lees-why-us-economy-doomed-if-nothing-changes

  9. Ricky Richter says:

    I Don’t Agree
    This time Hearne is wrong. Buy gold contracts they won’t swing down for weeks, its going to 2000 undoubtedly now. With little downside, you can get rich if you keep buying the contracts play on their money. I am.

  10. Marvin Goldman says:

    Gold Is King
    Gold is gong to 4000 plus and in less than two years, buy gold, get rich, it will go up and down, but not swings of more than 100 points.

  11. Zack Newton says:

    what goes up must come down
    With inflation figured in, Gold reached its all time high in the early 80’s. I think it reached somewhere around 8 or 900. Then it tanked and dropped below 300 in a matter of a couple of months if I recall correctly.. It’s taken 30 years to get where it is now. Buying at these high prices is probably a loser bet. It’s due to tank in the not to distant future.. Buy at 1800 today, sit on it too long and you’ll lose your ass. The people who will make money on gold today, are the people who have been sitting on it for decades.

  12. Bad Ass jew, Berkowitz says:

    Don’t Agree With Glazer
    Ah for once we don’t agree. I think gold is the play but not with contracts with bars or coins, like this guy Zack said. I have been buying gold for twenty years and have about 800 onces in coins and such now. I have made like 700% profit even if it falls back to say 1600. I think gold will climb to 2500 but not in a straight arrow, up and down, slowly getting to 2500 in less than a year. Zack it won’d fall 500 points no way. This economey is scaring me though, the market can’t afford another fall to 7000, that might cause a real depression and a bank run.

  13. Robertoe says:

    fool
    “Buy gold contracts they won’t swing down for weeks, its going to 2000 undoubtedly now. With little downside, you can get rich if you keep buying the contracts play on their money.” = anyone who would make a comment like this is a trading rookie fool. No one can predict precise timing on commodity markets. no one.

  14. Robertoe says:

    and Berk…
    You talk a big anonymous blog posting game with both gold and women.

  15. Hearne Christopher says:

    Please…

  16. Hearne Christopher says:

    Newton has a point. I was there for gold’s rapid rise (remember Bunker Hunt) and long fall

  17. Hearne Christopher says:

    Robertoe is all wise in this pronouncement

  18. Hearne Christopher says:

    Come on Robertoe, we both know Craig. Totally doesn’t sound like him.

  19. BarKeeper says:

    Selling Your Gold Jewelry
    Taking your gold jewelry and other stuff to these “Gold Buyer” scammers is like giving away money. By the time they “adjust” all the factors and the weight, you get a major hose down and are ripped off big time. You leave with perhaps 40% of what your gold was really worth. Think about it.

  20. Robertoe says:

    Hearne, you’re bringing up a good point on what will-at some point- happen on this gold price moonshot- the Bunker Hunt escapade. Remember after the little stock market crash of ’87, the powers that be set up a nebulous ‘plunge protection’ committee. They operate in the dark with no checks or balances (a big reason the U.S. gov has gotten so screwed up- too much of this: no checks, no balances, no oversight & in the dark = a recipe for corruption!) . Just like back in ’79 the exchange will jack margins way up and implement some sort of you-can’t-buy-you-can-only-sell self serving edict. Of course, the Goldmans of the world will be in on it in advance. They’ll mop up the little outside the loop guys both on the way up and down.(The little guys = us). An interesting aside on that Bunker Hunt silver escapade, it wasn’t just the Hunts. The Saudis were really the big money behind the scenes players on that squeeze.

    Its like when Katrina spun through the oil producing gulf, took or idled 95% of offshore oil production, 60% of Gulf refining capacity. Everyone was on hoard-the-fuel mode. Demand skyrocketed. Ricky Rickter would have been posting, “Oil has to go from $68/ bl to +$100/bl. It can’t have any pull backs! Buy! Buy! Buy!” What happened? The big boy, inside the loopers decided it was too damaging to the economy. They layed on it. It dropped from $68 to $61 concurrent with Katrina spinning through New Orleans, Ouch! The little guys (Robertoe looks in a mirror) got hammered!

    “Come on Robertoe, we both know Craig. Totally doesn’t sound like him.”
    Wrong Hearne, I don’t know Glaze other than our banter here. If I did know him as a friend, I’d tell him its ok to date 6 or 8 babes at once and 24 year olds but, by god, don’t publicly post about it unless you are some sort of societal masochist. But I know you’ve probably told him just the opposite! 😉 And Berk IS all bluster. Look at his post here talking about gold bars. Gold bars are 400 troy ounces or 438 of our ounces so we’re talking $800,000/ bar at today’s gold prices (now you are singing Mermaid’s siren song!). Give me a break. He posts a big anonymous game. All bluster. Now Smartman? I believe him. Credible. But not only didn’t Berk followup on my Mermaid outing, served up on a silver platter, but he’s never posted any explanation on why not. So he’s lost lots of credibility, especially when he posts as a self proclaimed bad ass. Hey Berk! Instead of posting here on Friday night, show up at Glaze’s late show comedy gig. I’ll have another sweet little mermaideske dish on my arm that I’ll introduce you to! He’ll no show and post here on Sat on how he was at home counting all his gold bars.

  21. Craig Glazer says:

    All True And Good Observation Robertoe
    Like it or not, I could say much more on the female scene here from my world, I don’t I’ve gone far enough. Yeah Hearne always wanted these stories, he touched on them in the Star, as much as he could in the 90’/2000’s, “Glazer ran into the burning building, his, Stanford and Sons while his blonde date sat in the Ferrari outside he drove up in…Glazer was bound and determined to save his place, especially stop the firemen from destroying the original brass plated ceiling that Jim Bridger put in back in the 1850’s.” See that sounds self serving, maybe hard to believe, but it was a fact, Hearne knew that and he wrote it for the Star. My life is so very interesting and entertaining cause it is so hard to believe at times, a guy who other than fought overseas, has done it all! Just doesnt happen. So people either like the stories, the tales or they don’t. Guys my age Robertoe are the most jealous due to the fact they are over say 40 and can’t do what I do, if they ever did. So they hate me, don’t know me, just hate. I get it. I mean them no harm, and as “hater” Justin Leon the former Stanfords local comic said, “Craig doesn’t care what you think, just keep saying his name and he is “winning” end quote. IN some ways thats true. NOBODY likes people to truly dislike them and especially for no good reason, but if you write about your exploits esecially with women and or action, you can count on the hate. That goes for anyone.

    Soo….yes it causes issues to write about ‘all your woman’ do I care, hmmm….not too much. I wasn’t in love with any of them, but my wife,Connie and that ended well, so no I don’t feel bad, its all true and lots more. Yeah it has cost me some dates and made some girls mad, true. I wish I had left a couple out, true. I will continue to tell stories, they are true. People will question things, ok, but thats the way it is….Berkowitz, no clue, haven’t seen him in like 25 years. I hear he is well to do, Debbie looked him up and said that, but other than that don’t know.

  22. chuck says:

    Robertoe
    Very interesting comments about the Hunts, silver, Sauds and Katrina.

    🙂

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