Cogito

Buy Gold Put Option (September 23-2010)

Posted in Uncategorized by qmarks on September 23, 2010

As the economy shows contradicting signals, gold has been the safest heaven for investors. But the demand to gold is not coming from people in the street, it is the hedge funds who buys gold through their carry trade dollars. So once the banks express their exit options from QE, the drop in the price of gold will be faster than the rise. Therefore I would buy a right to sell the gold in $1300 within 6 to 9 months.

Advertisements

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: