There are a lot of very well-respected market participants out there that are starting to really toot the Gold horn at this time. I mean, there are always gold bugs out there who will say buy gold at any time because gold is real money.
But the last 6 years have not been too kind to gold investors, since topping out at just over $1900/oz back in mid-2011. In fact, the Fed has since cranked up the printing press into over drive several times since then and gold still found itself stuck in a bear market.
Most are talking about the technical break of a multi-year downtrending line as the set-up.
Martin Armstrong is noting that Gold is pressing higher. He’s not yet calling a technical breakout, but he’s noting significant support at current levels.
Greg Weldon has recommended getting in at these levels so much so that he’s actually recommending using leverage as well through UGL ETF, which is a 2x ETF.
Jesse Felder is starting to ask if the Gold Stars are Aligning.
There are several others as well that have come across my wire but I’m not going to list them all. It’s enough times that it’s very noticeable.
If this is the beginning of the run, there is time. The next big run will certainly take us to previous highs around $1900. And it’s not going to happen overnight.
If one is looking to diversify their portfolio a bit and add some gold, I can see now being a good time to start to average in. Averaging in is certainly how I will go about it. Designate an amount to allocate and split it up to average in over the next few months.
I’ve decided to go in with some leverage using UGL. I’m not in a hurry to get in and I’m going to do this over time. So my strategy is to actually sell a Naked Put on UGL and try to get in on a dip.
UGL closed today at $40.07. I’m going to sell the UGL 06/16/2017 40.00 Put contract for $0.50. That means $50 to me. If UGL closes below $40 next week, then I’ll be assigned 100 share at $40. But remember, I will have collected $50, so it’s as if I’m getting in at $39.5 per share.
I’ll be in the RED on this strategy whenever UGL is below $39.50, but again, the idea is to average in. So this is the first tranche of several…