https://risksandreturns.com/category/gold/ In search of asymmetric trading opportunities… en-US https://risksandreturns.com/2007/09/23/adding-to-my-gold-position/ https://risksandreturns.com/2007/09/23/adding-to-my-gold-position/ Sun, 23 Sep 2007 20:29:48 +0000 Gold hit a 27-year high last week in response to the Fed’s 50 basis points cut which showed that the central bank was more concerned about economic growth than restoring confidence in the US dollar. The economy is on the path to a recession and it looks like the Fed and the government will do everything in their powers to prevent it, and in the process, devalue the dollar against other currencies and gold. https://risksandreturns.com/2007/07/12/comparing-the-current-gold-cycle-with-that-of-the-70s/ https://risksandreturns.com/2007/07/12/comparing-the-current-gold-cycle-with-that-of-the-70s/ Thu, 12 Jul 2007 20:23:08 +0000 The following graph plots the gold price during the 1970s over the gold price action since 2001. https://risksandreturns.com/2007/07/02/still-nervous-of-gold/ https://risksandreturns.com/2007/07/02/still-nervous-of-gold/ Mon, 02 Jul 2007 20:20:03 +0000 This year I have been a net seller of gold stocks for fear that gold has entered a mini bear market within a secular bull market. The US is clearly slowing down and the trade deficit, which was the main culprit for the surge in global liquidity, has recently started to improve. If liquidity growth slows down then all assets which had benefited from it previously will begin to suffer. https://risksandreturns.com/2007/02/14/getting-nervous-of-gold/ https://risksandreturns.com/2007/02/14/getting-nervous-of-gold/ Wed, 14 Feb 2007 20:15:10 +0000 Clearly we are in a world flush with cash. This has resulted in strong asset prices almost across the board. However, liquidity could suddenly dry up very quickly leading to a downturn in asset prices. Likely triggers for this occurrence are a further slowdown in the US economy or the unwinding of the yen carry trade. https://risksandreturns.com/2006/08/18/1000-gold-is-in-the-future/ https://risksandreturns.com/2006/08/18/1000-gold-is-in-the-future/ Fri, 18 Aug 2006 17:25:32 +0000 I have been bullish on gold for several years now. Even though the gold price has had a tremendous run from $260/ounce in 2000 to its current price of $615 the underlyng factors responsible for the rise remain present. Because of this I am fully invested in gold even though I have already made a lot of money.