[lbo-talk] 12%, plus

[Julio Huato]

If you are long on gold, you don't need to buy the actual physical
stuff.  That's cumbersome.  Where are you going to keep it -- safely?
There are calls (options) that, depending on strike price and delivery
date, require that you pay reasonably low premia --  which will
evaporate if the price of gold goes the other way.  But hey, you won't
lose more than that.  The NYMEX and other exchanges have gold options.

More simply, there are gold indices.  You can buy shares just as you
buy regular stock. This index, for instance, traces the price of gold
1:10:

http://finance.yahoo.com/q?s=gld