I have to say I bought the absolute high of the day ( pre market ) in ABX this am in europe time zone I still made money .... how ? I hedged by selling gold futures took a loss in the ABX but made it back covering my short in futures
I've heard that one before. I wish I had a dollar for every time I heard stuff like that. The recent run up in gold was hedge fund buying out of Bermuda and the Cayman Islands. Gold was US$580 last I saw down 6 bucks on what I thought was 'good news' for the metal! When you have various asset classes Stocks, Gold, Oil, Emerging Markets etc all moving with a 0.8 correlation then you know the problem is too much liquidity. The Fed, rightly or wrongly will tighten in order to get this liquidity out of the market. I'm not saying it will happen but 50 basis point hike is VERY possible. There is just too much cheap money out there.
you mean to tell me that with the thousands of of HF and probably a hundred or so CTAs that manage futures that "only" the ones based in bermuda and the caymans were responsible for the run - up in gold and silver ? thats a good one !
....fair comment.....if memory serves, the idea came from one of the talking heads on CNBN.............for what it's worth....
Yup! There are MANY Hedge Funds "based" there It doesn't take much buying to move gold a few bucks. Gold is down this morning I rarely watch CNBC only Asia Market Watch and only because I find Amanda Drury attractive.
Whatever the reason a lot of people and a lot of dollars have come off the price people are willing to pay for gold. US$150/20%+ fall tells me a few things:- 1/Get out of Gold ETF's 2/Get out of physical gold 3/ Get out of companies with a lot of debt and who do not hedge: NEM 4/ If you are going to buy gold stocks buy good companies with quality mines and/or mining tenements and make sure they are well managed such as SAR:AX for example. Hold for the long term. People bragging they profited selling futures are either lying to you or got VERY lucky. If you REALLY want to be safe stay out of the Gold market altogether. Hedge Funds REALLY do try to sucker speculators in by occasionally buying on BAD news like a terrorist incident and stuff. Do you REALLY want to make a few bucks by HOPING FOR BAD NEWS THAT WILL MOVE THE PRICE OF GOLD UP TEMPORARILY? I sure as heck don't!
GDM index up 7% yesterday. My idea to buy gold-mining stocks index ETF on pullbacks, posted on 06/22, proved to be right. But I don't think the rally is over. Expect at least retest of GDM June highs at 1080 (which is 5% up fom yesterday close).
barrons this weekend had an article that was saying to buy NEM not that I would buy it here but sometimes this will produce a "pop" for a name mentioned in Barrons the next monday
GDM index (or GDX ETF) is up another 3% today and retesting early June highs. I think further upside from here is limited and therefore would consider some short-term profit-taking and re-entry on next pullback.