I’ve always hated gold. I found it to be a supreme waste of time when allocating dollars to invest. But in 2016, the embattled sector, often maligned by soft money loving critiques, has been nothing short of stellar.
The raw commodity shot higher by 15.5% in Q1, the best quarterly return in 25 years. More than that, gold stocks were up 50 some odd percent, with HMY being the best performer–higher by an astounding 300%.
“The dovish remarks by Yellen earlier this week which reinforced the Fed’s stance to proceed gradually and cautiously with rate hikes this year have weighed on the U.S. dollar index, which is a positive for gold,” Vyanne Lai, an economist at National Australia Bank Ltd., said by e-mail. “Investment demand for gold appears to be holding up.”
The only sector that has done better is silver, +69%. Foreign utilities followed gold for the third best performing sector, up 32%.
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i will sell you my ABX today. seems the end of qtr tape painting frenzy may provide some fun today. vaudeville style.
gold has done pretty terribly since 2011 when the fed took control of the mkt. now with yellen getting qe talk back in the mix i would expect gold to revert back to getting its face bashed in.
full disclosure: short gold at 1235 via june 110 gld puts.
the time is now to get gold under 1000.
also off the ark. if the qe idea takes hold that thing will be lit on fire and all the animals aboard bbq’d and eaten. without utensils.
i would also like to please note that this is certainly another hated rally in the sense that everyone hates it. so when looking for areas that have not really participated yet the death, destruction, and embarrassment of gold would be one.
I personally think gold is lifting on the prospect of negative rates. My expectations for today are for today are extremely low.
10 year yield going in the tank, but market are near its highs. Something has to give.
bought the BIS down 6 1/2 % . an ark trade so kids don’t try this at home.
The performance of gold will decouple from the miners. Those mining companies have huge liabilities—financial and environmental.