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View Full Version : Kitco Pool Account or buying/selling VXX and CEF to make money to buy Gold/Silver



jbeck57143
29th June 2011, 09:40 AM
To try to make money to buy gold and silver with,

Would it be a good idea to try to do what this person did with a Kitco pool account? (This is from GIM2): The idea is to get a balance transfer check from a credit card company, that has 0% interest for a year, and use it to buy pms, then, after that's paid for, when the price goes down, buy some more--only buy 20% less than before, then during the 10 days you have to pay Kitco, wait for the price to go up, then sell enough metals from before to pay for what you just bought--do that 5 or 6 times. If it works as well as they say, it could have been a good way to make some money to buy gold and silver with. They explained it more thoroughly in a private message. At one point they started with 26k and ended up with 90k. Here's what they posted on GIM2:

From April 30
http://www.goldismoney2.com/showthread.php?17100-Just-lost-my-job...beggars-can-t-be-choosers-so-I-might-apply-at-Walmart

Want an alternate revenue stream? Max out all your credit cards, open a Kitco pool account with it. Buy as many ounces of silver as you can. Then create additional margin (10 business days to pay) by stacking silver buys, reducing your buys by 20% each time in case of a drop in price. Do this four to six levels deep and sell just enough silver to cover each buy as it becomes due for payment. When you unwind all your buys have Kitco cut you a check for the profit. Rinse and repeat. If silver tanks drastically leave the credit card company (JPM, Citi, BofA) holding the bag, since they are the ones who created this mess. No moral dilemma what so ever.

***********************************************
From Oct 5, 2010:

http://www.goldismoney2.com/showthread.php?9758-Stab-the-Beast-with-a-Silver-Dagger!

I borrowed $13,000 on my Citiccard credit card at 0% interest, which doesn't expire until October of next year. I've put it to work since the begining of September in a Kitco pool account, switching between Gold, Silver and Palladium or holding a combination of the three. I've netted $2500+ so far leveraging the $13,000. That's a 19% return I think. With the pool account you can stack your buys and you have 10 business days to pay, so you buy on dips and then pay for your buys after the metal goes up by selling off ounces you already have that have increased in value instead of adding in new money. I am making money now, but I did this back in '08 and got caught in the crash and lost a lot of money, so any gains I'm making now are really just recouping my losses. The '08 crash was quite an education, so now I am a much more informed investor (less greedy) and have gone to cash since Silver hit $23.50 and gold $1350.

Or would it be better, right now, to do something like what this person does with VXX and CEF:
http://www.goldismoney2.com/showthread.php?19258-I-am-truly-sorry/page2

(Post #27)
"You can't trade physical, the spreads and shipping costs are too high. You also run the risk of losing the physical. Anything can blow at any minute right now. Play with VXX and CEF."

(Post #32)
"I buy and sell it twice a week. 5,000 shares twice a week at 50 cents profit, today I sold at the open for a $1.51 profit. Now they will run the markets with the Greek bullsh!t CNBC is spewing right as I write this. Just like CEF if it goes against me for a week or a few days I don't care. I know where gold is going and I know where the DOW is going.... To the same number...I usually don't hold anything over night, but luckily I did last night. I was going to take a 50 cent profit 2 minutes before the close. I'm glad I didn't...Watch it tomorrow, they'll gap up the markets first thing on the Greek and SPR bull. Rinse and repeat.

DO NOT USE MARGIN !!"

jbeck57143
30th June 2011, 08:53 AM
What does he mean by "DO NOT USE MARGIN !!"?

mamboni
30th June 2011, 09:26 AM
He who lives by the sword shall die by the sword.

wrs
30th June 2011, 04:05 PM
What does he mean by "DO NOT USE MARGIN !!"?

Apparently borrowing money on a credit card at 30% isn't margin in this person's mind.

TheNocturnalEgyptian
30th June 2011, 04:16 PM
The honest (read: usury-free) way to make money is to use Arbitrage, and play the fluctuating gold-silver ratio. You will count your profits in ounces of bullion, and there is no interest, no usury, no debt. It's been explained on these boards before, at least twice by myself and several times by Saul Mine and others.


If my goal were to make money, this is how I would do it.