Wednesday, September 17, 2008

Got Gold?

I'm buying Gold today, specifically calls on the Gold ETF, symbol GLD. Here are a couple of charts supporting this position.



As for fundamentals, Russia is imploding, Financial markets are imploding, while uncertainty and risk are exploding. These are the kind of developments that Gold feeds upon and evidenced by today's $50 plus move in gold. The Golden Flyer Express is about to leave the station.



A

22 comments:

Anonymous said...

How about your speculative Gold...EGI now? It is down BIG from your reco?

Anonymous said...

any alternative other than gld?

Allan said...

As far as EGI goes, it's not responding much today, so I would put new money into GLD or, as an alternative DGP which is a double-beta ETF for Gold. DGP is up 20% today compared to a 9% move in GLD. The GLD calls are up triple digits.

Anonymous said...

All of the precious metals.

Goldman will fall next, then JPMorgan (yes, I know this for sure)

Ultimately, the US Treasury securities will be downgraded within two weeks.

So you can see refuge in all of the precious metals, Gold Platinum & some bullion.

This is the end of the United States. The rescue of AIG is just another band aid.

Wayne said...

Hey Allan,

Is there a way for this banking crisis to negatively affect the inverse of the financial sector, i.e. SKF? In other words is it possible that these are paper gains which might not be realized if the institutions backing the derivatives go belly up, before I've sold?

Please excuse the question if it's a dumb one :) Also good call on precious metals!

Regards,
Wayne

Iluha said...

i agree we are all going to hell

http://video.google.com/videoplay?docid=-7933005007190886447&hl=en

Anonymous said...

Hey Allan - what's your take on SSRI?

Thanks,
Ron

Allan said...

Ron, SSRI looks excellent on all time frames.

Wayne, a scary thought, maybe fodder for a future blog, "Got Firearms?"

Dave said...

Wayne and Allan:
The point about negatively affecting an inverse ETF in an area that is tanking may not be too far fetched. I ran across something a couple of days ago that really baffled me but I haven't researched it yet. Look at http://etfsecurities.com/ and chose the UK. Browse around but make sure to click on Precious Metals on the right-side drop down menu. Not your scenario but it shows there must be a severe disconnect between the spot price on some metals and their correspnding (paper) ETF. Lots of strange stuff happening.

Anonymous said...

Allan:

Do you consider today's up move a dead cat bounce?

Allan said...

Yesterday was the largest percentage move up ever in the price of gold, and today's follow-up of $45 is no slouch either. A far cry from any kind of dead cat bounce.

Anonymous said...

Allan:

Are you a "Gold Bug"?

Allan said...

Gold Bug? I buy gold to make profits, not as a way of life.

Anonymous said...

Last night, Donald Trump, one of the world's great investors endorsed John McCain on Larry King Live.

My question to you is:

Is McCain / Palin the only salvation for the financial markets?

If only McCain and his Maverick style can save us, what happens if Obama gets elected?

Allan said...

Mental health hotline
Get the Answers You're Looking For.

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Dave said...

Most lawyers I know openly (and financially) support the Democratic Party. Allan, please tell me you're different.

Anonymous said...

Kitcom, one of the largest dealers of gold coins today announced a stoppage of shipping coins due to lack of supply.

Allan:

Is Wall Street "dead"?

Anonymous said...

I am known on Wall Street as "The ORIGINAL Gold Bug."

I see gold (which is now at approx. $890/ Troy OZ. as hitting about $5,000/OZ. within the next few months. Ultimately at around 10K/O.

GOLD, GOLD, GOLD.

BUY IT!

- The Gold Bug

Anonymous said...

I'm feeling nauseous watching SKF go up and down. Have you ever seen such a thing?

Anonymous said...

Hi Allan - do you think we have hit a bottom with the Fed's latest actions which resulted in the Dow shooting up 400 points? What are you thoughts? Would you still buy Gold right now?

Thanks,
Ron

singlengle said...

Heh, Hey Allan, I have that train set, Ya think I could sell it for a couple of banks ! How bout the steel in the rails ;)

Allan said...

Ron - looks like fed saved global financial meltdown, or at least postponed it for now. I've covered my financial shorts (sold SKF) and actually bought BAC in my managed accounts, it's yielding over 9%, just stole merrill lynch and cannot be shorted.

A

PS: oh yea, been adding more NNVC under a buck, it won't be there for long.