-20% in 23 days equals a 300% return on your outlay of $3500 per contract.Too bad I posted this in another forum. Is this the poor-man's platinum? If you want to guard against fiat melt-down, do it with Gold/Silver and NOT Red Gold (Copper), Black Gold (Oil), Rhodium and Palladium. Yeah yeah, you can use it to barter and trade for your grains when the world nears it's end...There is always a farmer looking to fashion a catalytic converter and is willing to trade you for your "Palladium". Otherwise let me know how many calories are in an ounce of pa-lol-dium.
Granted all of the base metals and precious metals have had huge gains over the last year, but when the proverbial shit hits the fan, there is only one AU 79. For those who are invested in these the past year, congrats. For those momentum chasers looking into the next Platinum or the next Gold, sorry. Those who just recently shunned anything fiat and went "all-in" across base metals / commodities / not-so-precious-metals still have your sense of "security" but are currently under-performing as commodities and all-things not gold have tanked. If we return to "recovery mode" these things will be repatriated. Otherwise, stick to gold...You dig?
Forgot to put Copper on that chart. It's -18% over the same period.
On a related note, the dollar is roughly where it was in April 2009, Gold was 900 then. In USD terms Gold recently traded at a 40% premium. Of course the market is a zillion% higher now. This correlation is meaningless and often goes to extremes depending on where we are in the cycle. I'm not implying Gold is 40% overvalued.
In the next post I will look at the USD, Gold and the S&P to examine a few technical scenarios.
