Gold – $1,300 Liftoff? (August 28, 2017)

Gold just pierced through $1,300/oz! Many of us have been waiting all summer for a decisive break to the upside…

Will it be different this time or will the goons look to smash it right back down, per usual?

I don’t know about you, but I’m glued to my screen…

So many of us spent pretty much the entire summer looking for “needles in the haystack”, nitpicking our portfolios endlessly and trying to locate some of the better deals out there.

But truth be told, all of that “micro analysis” will fall by the wayside and get lost in translation if this gold bull market begins to resume course in earnest.

A rising tide lifts all boats.

Will all that “micro analysis” be worth all that hard work and effort?

We’ll see…

In any case, a day like today is a good reminder of what can happen to gold stocks when the trend is your friend and things are moving in the “right” direction.

 

Gold stocks provide some pretty potent leverage to the upside that can lead to some extremely robust returns in a heartbeat…

 

C’mon gold… Let’s break through $1,300/oz with full conviction and never look back!

 

Game On!

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hidflectFI FighterVegas WarriorKevinS Recent comment authors
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KevinS
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KevinS

To the moon Alice! To the moooooon! 😀

Vegas Warrior
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Vegas Warrior

Silver stocks can provide even more leverage! (Sent from the Silver State)

hidflect
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hidflect

I’m neither a gold bear or bug. I used to be a bear and could a write a pretty long and sophisticated points list on all the reasons why gold is worthless. Until I realised that gold certainly has its place in the market as the alternative to equities and cash. Gold is a bit like the reverse gear on a car. Takes you in the wrong direction and seldom needed but without it, you’re screwed. If gold didn;t exist, the markets would have to invent a substitute.

I noted your comment “will the goons look to smash it right back down, per usual?” with rye amusement. Doesn’t take rolls of tin foil to see the regular smackdowns and dumps occurring. Interestingly, right on the back of a smackdown, gold surged and an hour later L’il Kim launched his Japan rocket. Given that the total value of NK’s exports is $2Billion, it’s not hard to see him earning some foreign currency with his shenanigans via Chinese investors.

Traders I worked for in CitiGroup professionally hated gold. It was part of the culture. So they take unreasonably delight when it sinks, mainly because it moves counter to equities and has no yield. To buy gold is to admit your in failure mode. There’s many reasons gold is loath to climb but I seriously believe that cultural attitude (similar across trading desks globally, I suspect) is a large one. Unreasonable, unquantifiable but unavoidable.

To take advantage of gold I bought EVN a while ago ($1.31) and have nearly double bagged. Even if gold is anemic, the company is a grower. I will hold EVN to $2.85 (currently $2.46) but it could go higher if gold goes over 3500. I’m not confident about gold. Too many people hate it.

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