Why is this gold chart a must-see chart for serious investors and traders? The answer is simple. Those who have followed along have profited handsomely by buying a large core position aggressively in $600s, selling half of the core position at $1904 and selling the remaining half at $1757, undertaking a large number of profitable short-term trades from the long side during the gold bull market, and undertaking a large number of short-term trades from the short side to profit from the gold bear market.
At The Arora Report, we rely heavily on adaptive algorithms that take into account many, many factors. In our research, the four most important factors at this time are technicals, quality of ownership, inflation expectation momentum, and sentiment momentum. All of the four important factors are shown on the chart of popular SPDR Gold Shares ETF (GLD).
This article is Part 2 of this series and will explore quality of ownership. Part 1 explored technicals and can be found here. The chart has been updated since Part 1.
Please click here for a large chart.
Broadly speaking, owners of gold can be divided into the following categories:
- Central banks
- Institutional investors holding gold as portfolio insurance
- Individual investors holding gold as portfolio insurance
- Gold bugs
- Indians holding gold as part of an age old tradition
- Newly rich Chinese
- Smart money
- Momo crowd
Gold Is A Small Market
When analyzing gold, based on quality of ownership, it is important to note that in terms of trading, gold is a very small market compared to equities, currencies, or oil…Read more at Kitco.com.
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