Get On Board The Gold Train, Next Stop $1,800
posted by SCOTT REDLER
Gold has been one of the stories of the market over the last several years as the global economic crisis and an overall lack of trust in the “system” has led investors to seek a more evergreen store of value.
I personally first began talking about Gold in December 2008 when it was trading at $850/ounce. I felt the technical indicators and a compelling story suggested a move to $1,300-$1,500. Although I did not hold the SPDR Gold Trust ETF (NYSE:GLD), which is my preferred vehicle for trading gold, for that entire run, I traded gold on several occasions within that time frame with much success.
When you have a powerful idea, you must be able to execute it in a way that fits in with your overall trading or investment strategy, and that’s what I have done with gold. In hindsight, do I wish I had bought tier four gold in 2008 after I made that prediction on CNBC, and held it for the entire measured move? Sure, but I have not lost any sleep over it. I feel content that I traded gold in a way I was comfortable with. I have applied my own active, risk averse approach to the gold trade, locking in gains and taking risk off when it seemed appropriate to do so. Depending on your overall strategy as a market participant, customize your approach to trading gold.
No comments:
Post a Comment