Early in the week, it appeared to me that gold was topping out, at least in the short term, so I liquidated most of my GLD calls. I blew out the rest on Thursday after the $35 plunge. I have long-term positions that I have not touched. I will look to re-establish positions in GLD calls in the future.
Paul Kedrosky has an excellent post on gold being underowned compared to the last big financial crisis.
Kewl!
Shows Gold is always non-zero flight to "safety", but 4x more comforting in double digit inflationary context than in disinflation/potential deflation context.
Nice period selection.
Household debt as % of GDP (in U.S.) pretty much doubled in this period.
Posted by: psychodave | July 06, 2010 at 07:35 AM
[Rosie 7/7/2010]
"One of the current hurdles for gold is that central banks are monetizing their [gold] holdings through sales to the BIS."
Rosie holds strong conviction gold is still in a "secular bull market".
I'd prefer "liquidating" to "monetizing", particularly when BIS is the buyer. I'll still think of it as central banks draining cash from the system via sales of a mostly harmless asset to somebody with too much cash.
Posted by: psychodave | July 07, 2010 at 02:56 PM