Pretty bold call here in Gold from some Cramer guy over at Real Money.
The selloff in gold has not only run its course — if you bought the stocks on the way down, you are up, and up nicely.
…….I think gold’s in a bull market. That there’s more climbing ahead. That this was the pause that refreshes.
I feel very alone.
Except for the buyers of all the gold stocks who are taking shares with abandon.
Yes, value added as always. Calling a bottom 10% after the fact. If/when the call ever goes bad, some new wrinkle will get throw in to allow one to say “yes, that would have been the bottom had the bad news not happened.”
And yes, no one else has gold.
Whatever, we are never here to talk about the past, except when we are talking about the past.
An interesting trade I have seen bandied about involves some sort of long in metals and short oil. I ran a PnF of GLD vs. USO below (twice I guess, not sure how to delete one of them) , and fwiw, it’s in “X”‘s now off a pretty steep repricing.
No options yet in GLD, so it would involve either a straight ETF play there, or actual futures options (I don’t have access to those).
Nice post. Interesting to see what I’ve expected play itself out.
I noticed the prices of oil rising while gold was falling before, and I knew with gold and oil traditionally trading together that eventually there would likely be a retracement in oil and/or a gain in gold. Wanted to get GLD around $80 but it never got there.
I’m going to short oil(USO puts), and buy some gold as a small hedge… maybe silver too.
Tanks. And yeah, DUG works too.
I guess the (smarter) point I’ve seen on this is straight energy short has such huge geopolitical risk, you can at least offset that with the metals.