What is your favorite exposure to precious metals?
What do you guys use? I have made decent money buying options on the GLD (about 45% in the last 2 months) and UGL, AGQ, SLV, PHYS, and SLW.
However I am a little uneasy about holding GLD long term as I am a little unsure of what they actually hold if a real squeeze on gold happens, I dont want my ETF to just be a piece of paper with three letters on it.
UGL and AGQ are the same to me...they are all leveraged, I am not sure what really backs that up except some abstract theoretical increase that is in line with what silver and gold do.
So my main choice is SLW and AEM for silver and gold, respectively. However, although I am short term and medium term bullish on equities, i think that major inflation might destroy stocks, and it is had to judge miners because they either have way too high p/e's or lose money.
Which makes me want to buy physical gold and silver coins. However I only have like $1000 to invest in precious metals. I want to put a down payment on a house next year. So i have $3300 to invest but $2300 of it is medium term (about 10 months)so I am trading around with that money and buying deep discount stocks (Compton petroleum and DJSP)
With $1000 to invest in PM's, if I buy it on apmex, they are going to charge me about 2% over spot price. Even if Silver straight up doubles in price, I feel that the shipping, storage and mark up (and then consequently the mark down when I have to sell it back) is going to eat away a lot of my profits, which makes me want to use leverage (like options and 2x etf's). Also that is a lot less liquid. If a company I have been watching is trading at $10, and I think it is fairly priced, and some over reaction send its to $1, I am going to sell my soul to buy it, and it would take me weeks to send the silver back in and turn that into cash and deposit it into my bank account and then transfer it to my brokerage.
Which brings me in a full circle.
What do you guys the most? For me right now I either want physical silver, or SLW.
Also, cant decide if I should wait for a pullback or buy it now.