rolling daily vs buying a 3 month-er?

[john kane]

sorry if my terminology is incorrect.

given i want to invest in gold for the very long term (years), would i be better off rolling over a daily long position, or buying a december 2007 position/contract/whateverthecorrectwordshouldbe, and then buying another 3 month one in dec 2007, just on my spreadbetting account i cant buy longer than dec 2007 (unlikee forex where i can do 6 months)

many thanks

[john kane]

bump

basically i dont know whether when going long or short, i should be rolling over a daily position or 'buying' or 'selling' a 3/6/9 month contract.

sorry i dont know the proper terminology of the quarterly contract things, but i just don't know which i should be going for.

i assume as i am holding this positions for the long term (6+months) i should be going for the longest contract i can go for.

reply much appreciated.

[kimchi]

Speadbets and CFDs aren't suitable for long-term 'investing' (unless you're going short) due to the financing charges. With rates at 5.25%, a position with most spreadbet companies will charge you arounf 7% on your position.

For equities, the stamp duty/trading cost benefits of CFDs (ignoring tax free SB) evaporate after you hold the position more than around 6 months. I'm not sure about commodities/indexes etc.

What's the IMR on gold in your account?

If you plan on holding gold for years, you'd be better off buying a futures contract (more than $70000 exposure at the moment) or buying either physical bullion or electronic bullion such as from this copmany stored in london and insured by Lloyd's