Barely anyone I know is long gold and I rarely hear traders discussing it. Yet, the idiotic metal is now at 7 year highs, once again threatening a decade long consolidation. The only way gold gets interesting, in my opinion, is over $2,000. I know, it’s ripping. Ten percent of my quant is long gold, for reasons separate from my own opinions. I think, obviously, there is price momentum, but I also believe there is price resistance at and around these levels.
One year return are terrific. Considering the rest of the basic resource space has been a disaster, at a minimum, you should replace your oil and coal and copper stocks with something gold or silver. But to buy up here for a trade, in my opinion, isn’t very high probability.If you enjoy the content at iBankCoin, please follow us on Twitter