Throughout most of 2013, gold futures have been under major selling pressure. But, strong fundamentals persist for the yellow metals. Here's how to use options to position yourself for higher gold prices.
In a battle between the largest gold exchange traded fund and the biggest tech stock, which investment would get your vote? Would you choose gold because of the macroeconomic factors supporting the rise of the precious metal?
The gold price has been ranged-bound within $1,535 to $1,700 since March this year, so it is not surprising that investors are searching for the right reasons to own gold. Global economic news has been mixed.
The market bottomed that week and the shares are now on the cusp of a potential double bottom. Some bottoms occur instantly while some take a few months to develop. We believe that gold and the gold stocks are primed to head higher in the coming weeks.
While most experts agree the long-term outlook for gold prices is still bullish, the yellow metal's pattern this summer can only be described as one of fits and starts. In all, gold has made 11 short-term bottoms since May 29, the lowest being a close at $1,552.40.
Recent economic data might be enough to get the Federal Reserve to finally commit to more stimulus measures, which in the past has delivered a good run for silver prices. If another round of QE is announced get ready for a long-term climb in silver prices.
If you feel like Alice in Wonderland when you start to look into options trading strategies, you're not alone. Even so-called "experts" struggle with options. It gets even uglier when they attempt to bring it down to earth.
Precious metals markets started the new week with a bit of a mixed picture last night in overseas trading. Spot dealings showed gold falling $2.40 to $1,640.00 and silver down a dime to $31.60 per ounce. Platinum and palladium each advanced $1.