Gold Bug Or Gold Dud?
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
In the world of investing, there are bullish and bearish traders and investors. With gold, there are the believers that it is a safety play, hedge against an equity downturn and protection against fiat currency. Gold brings out strong emotions, and you are either a gold bug on a non-believer in what the metal is.
In either case, gold has been a dud for months, and that does not appear to be changing anytime soon. Subsequently, we are now seeing the big predictions. Those against gold are calling for $700; those for it are calling for $10,000. Both calls are meant to create a reaction of fear or excitement, and both calls are dumb.
Yes, gold could go to $700 or $10,000, but there are hundreds of levels in between those levels that will be tested first. Whether you are a trader or investor, you should stay away from the hype, the fear mongers and those trying to get you to react. The secret of trading or investing is to listen to the market and follow the footprints it leaves. No matter what you read or hear from the media hype, gold is in a range of $1,180-$1,240 and until one of those is violated, all other predictions are worthless.