So… if you shorted Gold GC today, please stop reading this, you’re not welcome here! Ha… But seriously…
As Crude Oil continues to work for me, and even if it is scary / not pretty, CL finding its way into the green again. YET — My focus is on the metals, and specifically in GC. I have been stalking Gold for a long time, I watch all these different markets, and I often try and figure out their implications on the shiny forgotten metal. Over the years, I have traded it with/against the stocks, the dollar, oil… I still finally realize, nobody cares about Gold GC — with the exception of maybe the late night wingnut gold bug crowd buying up siver eagle coins or whatever they are called LOL… *My issue is I want the hedge fund manager, banker, or say trader to start caring for the forgotten safe haven. Without volume, without a crowd, without opinions, — Gold GC isn’t going to be able to move.
Is that it—, or is there a certain central bank that has this thing on complete auto-rig, so they can move it when they need? *Or, is there an investment bank, thats cornering everybody, –especially the guys buying the coins.
Either way, I don’t think we stay here, and it’s not like we are on the lowest levels of the year for GC, even as we have had the USD attempting to firm up again. One thing that is continuing to confuse me on the Gold GC move, or lack there of… If the stocks are going to sell off for fear/uncertainty reasons — Why not BUY GOLD? (I am baffled that people would rather buy US Treasuries ahead of a rate rise, or even a fake product in the intangible untamable VIX).
BASICALLY — AS MY GENERATION HAS KILLED THE VALUE IN ANYTHING PHYSICAL OR TANGIBLE. — WE DON’T SEE THE “SAFENESS” IN BEING ABLE TO HOLD/OWN THE PHYSICAL GOLD, (vs. buying virtual protection in a electronic contract).
Future markets are extremely Darwinian, and with weeklies/EOMs/quarterlys, different sizes of contracts, settlements, exchanges, brokers, more and more changing technology than ever today — heck we just finally closed the PHYSICAL futures pits. — We don’t trade pork bellies or potatoes anymore, but I am not willing to have the argument debating Golds relevance, as if Gold is about to go off the CME trading board, ha..
One thing that’s in Gold’s camp, is that to it’s peers, like a Platinum, Gold is the best in class, it trades at a premium to Platinum for example, which for a long time, GC traded Platinum 1006.1). So relatively, maybe Gold doesn’t seem like the “worst product in the world”. I mean as my last 2 blog posts supported, and I still stand by it, “I am hiding out in Gold GC”. *Even if the old safe haven is not heading north (for now), it was still “safer” to hide in while almost every Market was in the Red during these past couple of “CRAZY Sessions”.
For now, I have more than a few positions I am managing — and as I always trade futures looking towards tomorrows session, I anticipate that we will find out which came first: the goose or the golden egg. *Basically, relationships and correlations come and go, but they will be back as Gold GC tries to figure out, if it is truly “The Forgotten Investment”.
One last thing going for Gold is: everyone is being pretty quiet about the low price again — it would alarm me more, if all of a sudden, everyone was talking about Gold GC. I think people will talk about it again, BUT hopefully, once it is to late (as everyone is comfortable being a monday morning QB for some reason). But then again — I know nothing.
Let’s try again tomorrow. – Happy Trading.
-Bret Rosenthal
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