GOLD *MAY* go up as the market corrects, because some people may start to shuffle money around.
There are two concepts behind this trade for me.
On the interim, its a speculative play, based on potential correction in the overall market, bringing gold stocks up a bit, which I would benefit from.
Otherwise, ABX (Canadian) and GOLD (US) both representing Barrick Gold corp are trading at the lowest they had in one year.
The price, is quiet attractive, even as a long term hold.
For this trade, I am not setting a stop loss. As a matter of fact, I will accumulate at key levels of support at the stocks come down.
The idea is that one day some day, circumstances will be such that gold prices and stocks will get me a return.
2 things to note
1) accumulation strategy requires the ability to average down numerous times, so keep initial positions small so you can be liquid. For me, i'm starting with a small position which allows me to accumulate aggressively in the future.
2) Gold is not what it once was, sadly because of bitcoin and other types of currency. There is too much to bet on, and gold is not that "safe heaven" it once was according to some investors.
Either way, Barrick is trading well below avg analyst value. I am making the exception to accumulate on this one.
There are two concepts behind this trade for me.
On the interim, its a speculative play, based on potential correction in the overall market, bringing gold stocks up a bit, which I would benefit from.
Otherwise, ABX (Canadian) and GOLD (US) both representing Barrick Gold corp are trading at the lowest they had in one year.
The price, is quiet attractive, even as a long term hold.
For this trade, I am not setting a stop loss. As a matter of fact, I will accumulate at key levels of support at the stocks come down.
The idea is that one day some day, circumstances will be such that gold prices and stocks will get me a return.
2 things to note
1) accumulation strategy requires the ability to average down numerous times, so keep initial positions small so you can be liquid. For me, i'm starting with a small position which allows me to accumulate aggressively in the future.
2) Gold is not what it once was, sadly because of bitcoin and other types of currency. There is too much to bet on, and gold is not that "safe heaven" it once was according to some investors.
Either way, Barrick is trading well below avg analyst value. I am making the exception to accumulate on this one.