Everyone is bearish on gold and GLD has been beaten heavily in the last couple of months and in 2016. It seems bearish sentiment too obvious on GLD. Based on sure chaos that will be created after Jan 20th and overvalued stock market, I believe it makes sense to be unorthodox and nibble into GLD. You might not hit a jackpot in the near future but it is safe/wise diversification specially in the current situation and time frame.
Gold loves uncertainty (price wars in the crystal ball?). The correlation with the U.S.$ will dissipate into a secondary factor (debt), with more focus on international affairs (China, Europe etc). IMHO
Youre just assuming that there qill be chaos after the 20th. Another view is that the trump presidency is already priced in and that nothing major will haven in the next 6 to 18 months. Ive heard so many guys say were approaching the next crisis since 2013, if this market keeps being bullish for 5 years what will your gld position look like ?
I can not prove this but I believe it is impossible things might go smoothly even the first month of the presidency. Trump presidency is unknown in terms of what he is going to do so everyone has priced in its effect based on his imagination/expectation. Market and Gold do not always go in the opposite direction.
Let's talk about this after 2017. Talking about this during a boom period is not ideal. People buy gold when they don't trust the government anymore.
Sure. You mean in 2018 or a few months passed in 2017? Which government you are taking about? The world is not just US. By the way your statement on when people buy gold is totally false and baseless.
Whether you think many people will buy gold and from this level gold will turn on reversal which on few month having tendencies to bearish, some analyst said possible gold down on 1000 next year, but indeed market sometime not easy to understoood
Today an interesting thing happened. GLD has been up for 4 straight days. Today it was up over 1% and closed at almost high of the day. We see news surfacing that maybe the worst for GLD is over. I am sure when GLD hits $140, everyone will become bullish but would be late. Even buying some GLD as diversification makes sense. Tomorrow will be interesting not that we care too much on daily action. My shortest trend window is a week.