Gold is such a pathetic hedge(or a non-hedge even)

Discussion in 'Commodity Futures' started by trader99, Oct 30, 2020.

  1. trader99

    trader99

    In these volatile and crazy times, one would think gold should be going up. But of course, it gets bitch slapped like every other asset classes.

    Just an observation. I have stopped trading gold a long time ago.
     
    jys78 likes this.
  2. bone

    bone

    Yeah, I agree that it's correlation utility is diminished. Certainly not like it used to be.
     
    trader99 likes this.
  3. guru

    guru

    Same with VIX.
    It’s so stretched/expensive that it doesn’t provide much hedging anymore. While the market was tanking over last 3 days, VIX hasn’t budged much. No one can stomach paying more for hedges.
     
    trader99 likes this.
  4. bone

    bone

    Oil is another lost soul. So much supply on the market that there is zero flight-to-quality bid. It's just an analog to the equity markets.
     
    jys78 and trader99 like this.
  5. trader99

    trader99

    Yep. I feel the best action now is in equities market and direct participation like going long or short. Using gold/oil/vix hedges are not a good match.
     
  6. bone

    bone

    Even the currencies have fallen off quite sharply in terms of their correlation value. So much dilution and pumping by Central Banks.
     
    trader99 likes this.
  7. Gold bugs will never get it. In times of dollar strengthening, gold goes down along with everything else.
     
    ET180, Fonz and trader99 like this.
  8. trader99

    trader99

    Everytime the dollar moves up just a little, gold takes it under the chin. Not even a big move.
     
    Money Trust likes this.
  9. I took a bit of a beating on most of my tech trades lately, but I did short (option spreads) some oil ETFs. Not because of any kind of market savvy, just because they have been in a long decline. Helped offset some of the others. Had a very few gold miners too, but they didn't help much...
     
    trader99 likes this.
  10. Have you done any analysis of your hedges before you put them on? Stop relying on tips fake traders give and start doing your own research. You ever wonder why professional traders have many monitors? To monitor/analyze things lol.
     
    #10     Oct 30, 2020