@realmoney
Sep 21, 2020 | 02:45 PM EDT DOUG KASS
Whither Gold?
I originally purchased (GLD) in April 2019 at around $120/share.
The last sale is about $179 -- down by about $4.20 today.
I have traded gold well over the last two years -- probably engaging five times, possibly
more.
I don't have a position on but I want to have a portion of my portfolio in gold, but I have been laboring with what level I should be buying.
Here is what is keeping me from adding in today's schmeissing:
* The reasons to own gold seem too obvious -- the debasement of fiat
currency through expansive monetary policy and wanton fiscal policy.
* Sentiment is already bullish. My impression is that too many are optimistic about the outlook for precious metal prices.
* Everyone who wants to own gold might already own some.
* The peak Covid-19
pressure/panic is likely over, so gold could sell off hard on good therapeutic and/or vaccine news.
* How much longer will real interest rates stay so low? Probably not too much longer.
* If the capital markets sell off more severely (from here), gold might serve as an ATM
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