I admit my surprise that gold has declined since its all-time high in March. I put a nice chunk of my portfolio into a bullion ETF and a mining ETF in the expectation of massively rising inflation. Well, inflation is here, but Mr. Market doesn't seemed to have noticed.
Maybe it's the decline in oil prices that has put gold on the ropes; they are alleged to move in tandem. No matter. I'm a long-term investor, and my gold positions are designed to preserve my portfolio when Helicopter Ben starts running the printing presses. I will keep holding IAU and GDX, and it looks like I'll be involuntarily acquiring some more of the latter now that a short put I had on it will be exercised! Fine with me.
BTW, I've had buyers' remorse about selecting the Barclays gold ETF instead of the State Street product ever since State Street made their ETF optionable. Too late to change now! I can only hope that BGI gets their act together to have their product follow suit.
Nota bene: Anthony J. Alfidi holds long positions in IAU and GDX, and sometimes writes covered calls against GDX for additional yield.
Maybe it's the decline in oil prices that has put gold on the ropes; they are alleged to move in tandem. No matter. I'm a long-term investor, and my gold positions are designed to preserve my portfolio when Helicopter Ben starts running the printing presses. I will keep holding IAU and GDX, and it looks like I'll be involuntarily acquiring some more of the latter now that a short put I had on it will be exercised! Fine with me.
BTW, I've had buyers' remorse about selecting the Barclays gold ETF instead of the State Street product ever since State Street made their ETF optionable. Too late to change now! I can only hope that BGI gets their act together to have their product follow suit.
Nota bene: Anthony J. Alfidi holds long positions in IAU and GDX, and sometimes writes covered calls against GDX for additional yield.
