“Gold is being used as a non-correlating asset to equities as a hedge for portfolios.”
Actually, equity exposure is at quite low levels right now. Exposure to even more risky emerging markets is even lower. they are due for a bounce. Look at the performance out of China last night.
“Create in your mind a set of scenarios which would reflect a marked decrease in insecurity about world economic growth (and a better environment for equities) and you will have the right conditions to sell gold.”
No – by that point everyone else will be in sell mode too. Better to be ahead of the trend. Why short the Nasdaq when it is 2000 and falling when you could have shorted at 4000 or 5000?
“Selling gold now is a scary proposition”
First of all do you mean selling or selling short? The latter is the only scary proposition because I don’t know when the speculation will exhaust itself (but I suspect it will be pretty soon given how deep down into the population the speculation has gone). I think it was Keynes who observed that even if you see a bubble it might not be a good idea to go short because the market can stay irrational longer than you can stay liquid.
“Gold is being used as a non-correlating asset to equities as a hedge for portfolios.”
I was deeply moved by the photo on the front page of the Wall St. Journal this morning. It shows a staff sergeant comforting a pfc who had been stunned by an explosion in Afghanistan. With one hand he is putting a cigarette to his mouth to take some puffs, and in the other hand he is holding a small Bible, reading one of the soldier’s favorite Psalms.
haha, bunch of tin hats talking about buying and selling gold.
funny morning posts DIBS. Liriope looks so pretty, and it says its a shade plant. I may try it.
Leche, I think you want to sell gold. Create in your mind a set of scenarios which would reflect a marked decrease in insecurity about world economic growth (and a better environment for equities) and you will have the right conditions to sell gold. Gold is being used as a non-correlating asset to equities as a hedge for portfolios. You can make yourself pass out arguing about why gold has no inherent value and is like wampum or tulip bulbs. You need to think about gold as a quasi-currency (it is used as a store of value in Asia and the Middle East now and until we dropped the gold standard, here). Selling gold now is a scary proposition (but you can try with tight stops).
stock market = casino
retail investors beware & forewarned
“Gold is being used as a non-correlating asset to equities as a hedge for portfolios.”
Actually, equity exposure is at quite low levels right now. Exposure to even more risky emerging markets is even lower. they are due for a bounce. Look at the performance out of China last night.
“Create in your mind a set of scenarios which would reflect a marked decrease in insecurity about world economic growth (and a better environment for equities) and you will have the right conditions to sell gold.”
No – by that point everyone else will be in sell mode too. Better to be ahead of the trend. Why short the Nasdaq when it is 2000 and falling when you could have shorted at 4000 or 5000?
“Selling gold now is a scary proposition”
First of all do you mean selling or selling short? The latter is the only scary proposition because I don’t know when the speculation will exhaust itself (but I suspect it will be pretty soon given how deep down into the population the speculation has gone). I think it was Keynes who observed that even if you see a bubble it might not be a good idea to go short because the market can stay irrational longer than you can stay liquid.
“Gold is being used as a non-correlating asset to equities as a hedge for portfolios.”
OK.
I was deeply moved by the photo on the front page of the Wall St. Journal this morning. It shows a staff sergeant comforting a pfc who had been stunned by an explosion in Afghanistan. With one hand he is putting a cigarette to his mouth to take some puffs, and in the other hand he is holding a small Bible, reading one of the soldier’s favorite Psalms.
God bless our military personnel.
When it does crack, it will be devcestating given the fact that so much of everyone’s exposure is in ETFs.
haha, bunch of tin hats talking about buying and selling gold.
funny morning posts DIBS. Liriope looks so pretty, and it says its a shade plant. I may try it.
exactly, gold is an insurance against paper stash. buy the gold bars instead of the ETF’s.
Leche, I think you want to sell gold. Create in your mind a set of scenarios which would reflect a marked decrease in insecurity about world economic growth (and a better environment for equities) and you will have the right conditions to sell gold. Gold is being used as a non-correlating asset to equities as a hedge for portfolios. You can make yourself pass out arguing about why gold has no inherent value and is like wampum or tulip bulbs. You need to think about gold as a quasi-currency (it is used as a store of value in Asia and the Middle East now and until we dropped the gold standard, here). Selling gold now is a scary proposition (but you can try with tight stops).
You can’t actually buy anything or barter with your GLD shares!!!