By Raghu Gullapalli
Is it too late to buy gold?
This is a question that everyone asks me as soon as they find out I’m a trader. Of course the question comes in many forms…
Have I missed the move?
Is it too expensive now?
In fact even my mother asked me that question just this past weekend. And my mother-in law asks, should we sell?
My answer to everyone is the same.
Gold and silver have had a remarkable run. Iinvest and trade in both commodities through their respective ETFs (SPDR Gold Trust(GLD), iShares Silver Trust (SLV)) and the companies that mine them (Barrick Gold Corp (ABX), Goldcorp (GG), Silver Wheaton(SLW)). Gold in my opinion is the better trade now for those investors like me who wish to clearly define their risk. And it's still very much a BUY.
GLD has trended up strongly over the past year and I believe it will continue to do so. It has been in a strong upward channel since August and is now trading strongly above the 55, 110 and 210 period moving averages. Chairman Bernanke’s lack of desire to support the dollar should continue to push the dollar lower and gold higher. Hence, my continued belief in the GLD investment.
Rather than outright selling, look at your profit targets to make your decision. Most important though, define for yourself now an intelligent exit strategy to keep those profits protected. SmartStops.net shows the current tighter short-term exit point at $147.73 and the wider, long term at $140.61. As it is optimized daily, SmartStops can bring real time risk awareness to a very fluid market environment.
Editor's Note: This content was originally posted on SmartStops.net.
Is it too late to buy gold?
This is a question that everyone asks me as soon as they find out I’m a trader. Of course the question comes in many forms…
Have I missed the move?
Is it too expensive now?
In fact even my mother asked me that question just this past weekend. And my mother-in law asks, should we sell?
My answer to everyone is the same.
Gold and silver have had a remarkable run. Iinvest and trade in both commodities through their respective ETFs (SPDR Gold Trust(GLD), iShares Silver Trust (SLV)) and the companies that mine them (Barrick Gold Corp (ABX), Goldcorp (GG), Silver Wheaton(SLW)). Gold in my opinion is the better trade now for those investors like me who wish to clearly define their risk. And it's still very much a BUY.
GLD has trended up strongly over the past year and I believe it will continue to do so. It has been in a strong upward channel since August and is now trading strongly above the 55, 110 and 210 period moving averages. Chairman Bernanke’s lack of desire to support the dollar should continue to push the dollar lower and gold higher. Hence, my continued belief in the GLD investment.
Rather than outright selling, look at your profit targets to make your decision. Most important though, define for yourself now an intelligent exit strategy to keep those profits protected. SmartStops.net shows the current tighter short-term exit point at $147.73 and the wider, long term at $140.61. As it is optimized daily, SmartStops can bring real time risk awareness to a very fluid market environment.
Editor's Note: This content was originally posted on SmartStops.net.
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