As gold prices surge higher, investors are beginning to wonder how to short gold to get in on the action.
Whether or not a gold short makes sense is up to each investor, but there are a few methods for shorting gold which work better than others.
We’ll show you how to short gold with ease, and get the best bang for your buck.
How to Short Gold
Gold, gold, gold, gold, gold—everyone wants to own gold! Gold IRA accounts, those which allow investors to buy gold bullion and collectable coins inside an individual retirement account for future retirement costs, aren’t all they’re made out to be.
In fact, investors who buy gold IRA accounts may find that they’re losing far more than they could ever possibly make. We’ll explain why gold IRA accounts aren’t the right way to go.
Gold and Government
It is starting to look like there is great weakness in the silver and gold bubble that started nearly one decade ago. Recently, the price of silver has plummeted, which commentators have said is partly to do with the COMEX (CME Group’s) margin hikes. An increase in the cost to buy silver on the futures market means the most aggressive buyers and sellers alike have to unwind their positions.
Is the silver bubble bursting?
JP Morgan announced on Tuesday that it would accept gold as collateral against loans made on brokerage and investment accounts. Before that key announcement only Treasuries, equities, and some other corporate paper/debt securities could be used as collateral. Gold is now positive carry.
What is a Positive Carry Asset?
Is it any surprise that gold and silver were rising as they were ignored, and have been falling when they become recommended? Not really.
In fact, the reasons for such a movement are generally pretty simple: institutions ride the wave up, and they exit by selling off to retail trend followers. We’ve seen this phenomenon happen time and time again, and commodities are no different than are any other investments.
Risk is Gone
Investing, Precious Metals
While the world focuses on the United States and Europe, two areas that have seen massive bailouts and easing in their own right, investors might be better instead to focus that attention elsewhere—China.
Why China Matters
ETF, Futures and Commodities, Precious Metals
I figured I’d follow up the post on cyclical commodities with a few notes on the monetary metals, namely silver and gold, and what causes price action in these two metals. Yesterday I posted about the cyclical commodities, or those that would rise and fall with changes in economic output so today’s post on the commodities that rise and fall with monetary policy seemed to be a good fit. Read more…
I wanted to take a blog post to talk about cyclical commodities. The markets as a whole are really very cyclical; we have recession then recovery then recession. But the market also demands different goods throughout this cycle. Think of a wave between another wave. Read more…
Futures and Commodities, Investing, Precious Metals
Precious metals have exploded as a hedge against indecision and inflation following the worst economic crisis since the Great Depression. However, not all firms have as much interest in your success as they do their own. So here’s a quick guide to follow if you’re interested in precious metals investing. Read more…