Question: How do I protect my physical metals holdings in this period of scary price volatility? Answer: Several choices: From a long put to a put spread to a platinum butterfly.

摘要

If you believe chat no nation can become wealthier by going deeper in debt, then gold, silver and platinum might be a viable hedge against the inevitable inflation that follows massive government infusions. Because investment metals can be cashed into any currency, they also are a hedge against a collapse of any nation's currency. However, even the most confident bull might be second guessing himself with recent price drops: From October 2012 to mid-July, gold has fallen from $ 1,800 per troy ounce to $ 1,200, a 33% plunge. Silver has fared worse, falling 50% in the same time-frame. So should you place a stop order and hope for the best? Should you dollar cost average and buy more, or take the loss and hope to get back in at even lower prices? That depends on your level of sophistication and the ultimate plans for your positions. If you are using precious metals as a life-hedge, you may not want to sell your coins, ingots, and bars. But just watching the metals and hoping for the best is not a game plan either.