Quote:
Originally Posted by stockwiz
I'd be careful with gold. The recent move is irrational and the gold to oil ratio is trading at almost never before seen levels. If you want to gamble with precious metals there are a number of metals stocks that would explode if gold make a move to 1500+.. just place in tight stop losses.
|
Gold moves always appear irrational.
The gold to oil ratio means nothing and it makes sense that it is really high right now since the last time oil was this low, gold was much lower than its current price. It's just math and is about as important as the ratio between my weight and my street address.
The metals stocks have already exploded with the average gold stock up 50% from just last month. Some are almost double. If you don't already own some that you can lighten-up on, buying a few puts on those stocks would make sense.
At the time of this post, there is still an hour to go to get some March 18 Puts on GDX, NEM, GG, et al. ... or, if you 're possessed of some really large nads, you can buy the weeklies.
Oh yeah; ... gold is not an inflation hedge .....gold is not a fear trade. It's just money.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
