Gerald Celente takes a golden shower

As mentioned earlier this week noted trend forecaster Gerald Celente has revealed that he has taken a hosing on his commodities account held with a broker that was owned by MF Global. From the RT interview below I surmise that Gerald was trying to be a cheap bugger by buying COMEX futures contracts and then standing for delivery. He said that his frozen account was in the six figures so most likely he was trading 100oz gold futures contracts hence Gerald has been hosed for approx $176,500 or multiples there of. 

Taking delivery of futures contracts is a cheap way to buy gold in quantity at spot plus baring, delivery and brokerage charges - basically he was buying gold at spot + approx 0.5% - a sweet deal, when it works!

Alternatively Gerald could have bought physical gold sales tax / GST free with the protection of it being securely held offshore in 1kg bar form at 0.85% over spot or in physical unallocated form for 0.7% over spot from me at ABC Bullion. Plus if he structured his account correctly via a non US domiciled company or trust he may not have been liable for capital gains tax on any future profits. 

So often in life grasping for the cheapest option can cost much more than you save.

By RTAmerica on Nov 14, 2011