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.
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.
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.
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.
The FDICs call for a bad bank to wipe away all bad assets from bank balance sheets may sound great at first but creating a bad bank doesn’t end the problem. Instead it transfers the loss from private companies to the balance sheet of the government. Read more…
