Gold futures are the best way to invest in gold, some say, because they track gold with fewer transaction costs than gold shares or ETFs. And investors don't have to commit much money to control a big gold position. The risk, of course, is that a tumble in gold price can wipe out the collateral behind a gold-futures position.
WSJ: How to Play the Gold Game
Moderator: Global Moderator
WSJ: How to Play the Gold Game
http://online.wsj.com/article/SB1000142 ... 36446.html
"Well, if you're gonna sin you might as well be original" -- Mike "The Cool-Person"
"Yeah, well, that’s just, like, your opinion, man" -- The Dude
"Yeah, well, that’s just, like, your opinion, man" -- The Dude
Re: WSJ: How to Play the Gold Game
Looks to me like we're entering stage 3 of the bull market. The big money is already in while the press begins to justify the high price rather than mocking it. Having the WSJ validate buying gold is a very significant turn of events.
Next we'll need the public to accept the idea and begin buying gold en masse. Since bubbles require mass participation by the public, that should set the stage for liftoff and the cocktail party/BBQ conversations that follow. The next 5 years should be interesting to say the least.
Next we'll need the public to accept the idea and begin buying gold en masse. Since bubbles require mass participation by the public, that should set the stage for liftoff and the cocktail party/BBQ conversations that follow. The next 5 years should be interesting to say the least.
Re: WSJ: How to Play the Gold Game
I liked the second comment, by George H:
"Making money in gold is dicy. Gold is a currency trade and currency trading is for professionals only. But gold as a hedge is another matter. If your gold currency investment goes down, that is good. It means the rest of your portfolio is most likely going up. Also watch Congress and the President, and the Fed. What the US and most of the rest of the world is doing in terms of fiscal responsibility, is good for gold prices. If that changes, well that is bad for gold prices. What is the right price for gold? Beats me."
While gold's price behavior may be more complicated than a currency trade, the gist of what he is saying- holding assets that are non-correlated, supports what we are doing here.
"Making money in gold is dicy. Gold is a currency trade and currency trading is for professionals only. But gold as a hedge is another matter. If your gold currency investment goes down, that is good. It means the rest of your portfolio is most likely going up. Also watch Congress and the President, and the Fed. What the US and most of the rest of the world is doing in terms of fiscal responsibility, is good for gold prices. If that changes, well that is bad for gold prices. What is the right price for gold? Beats me."
While gold's price behavior may be more complicated than a currency trade, the gist of what he is saying- holding assets that are non-correlated, supports what we are doing here.
Re: WSJ: How to Play the Gold Game
His comment is spot on and something I've repeated many times. I really don't want to have gold doing great in the portfolio. That means the US dollar is under pressure and my real purchasing power in the other 75% of the portfolio may be having problems. Gold is held in the portfolio as protection against paper money problems. I really don't want to see it go up crazy amounts. That likely means inflation is expected or happening at a high rate.6 Iron wrote: I liked the second comment, by George H:
"Making money in gold is dicy. Gold is a currency trade and currency trading is for professionals only. But gold as a hedge is another matter. If your gold currency investment goes down, that is good. It means the rest of your portfolio is most likely going up. Also watch Congress and the President, and the Fed. What the US and most of the rest of the world is doing in terms of fiscal responsibility, is good for gold prices. If that changes, well that is bad for gold prices. What is the right price for gold? Beats me."
While gold's price behavior may be more complicated than a currency trade, the gist of what he is saying- holding assets that are non-correlated, supports what we are doing here.