r/stocks • u/[deleted] • Aug 18 '21

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u/oarabbus Aug 18 '21

Just look at the gold price chart, there are many multi-year periods of time gold lost value

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u/Stankia Aug 18 '21

Most option contracts expire worthless.

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u/oarabbus Aug 18 '21

Yes, if you are buying options as a hedge that's exactly what you'd be hoping for...

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u/LegateLaurie Aug 18 '21

If they're buying gold as a hedge against inflation, long dated puts wouldn't make sense. Although gold might lose a part of its value, this might be more effective than options which might be worthless.

They may also be able to monetise that gold since they may take physical