Unconventional Strategies For Those Who Have A Strong Conviction In Gold
Aside from buying actual shares or call options on the GLD,GDX or any Miners, there are some strategies some might consider. (I can't emphasize enough, know what your doing(risks), avoid margin buying or keep it to a minimum).
1)My favorite was/is writing put options when gold(GLD) went to 820-825. I feel this is rather safe although gold is inherently volatile if approach this in the right manner. I wrote multiple out of the money puts for 2011. Gold would have to drop below 750 for me to incur losses at expriation. But you don't have to wait until 2011 to not have to worry about the puts you wrote. If gold went to say 1000 at anytime between when i bought them and Jan 2011 i could buy the calls back for 10% of the cash I recieved from writing them.
Warrants- Check out Canadianwarrants.com, to get a complete list. Silver Wheaton, Kinross gold and many others go out to 2013. They are more accurately priced because unlike the options market pricing model (black-scholes) which assume a normal probability distribution, warrants aren't (but rather allow you to determine the intrinsic value.
Equity Future Options- They are available on many miners and in my opinion give you more leverage than options depending on the size and cash position of your portfolio.
The same goes for SLV and most OIL etfs in terms of writing out of the money leap puts. This is just informing people of instruments that often go overlooked.