Gold is ticking a ‘higher high’ to the February high this morning and technically, that is a good thing (implying a confirmation of an uptrend). But never do you buy gold or pile into the miners because of war, geopolitical strife or terror. Well, you do if you are a knee jerking news follower or even a momentum trader. But you don’t if you are looking to position. The time for that is after the fear of the moment unwinds and man, machine, casino patrons, substance abusers and ma & pa jerk right back out again.
Gold is for anchoring a portfolio with bedrock insurance against various issues, which can include ongoing global crises (geopolitical and monetary), but more importantly, includes failure risk of ever more experimental and bold central banking. When you have the bedrock (in your hand), you have a certain grounding that other casino patrons do not have as you go forth and speculate.
This morning, they are running to the safe havens like gold and Treasury bonds. I have my forever position, which is gaining value this morning. I don’t expect it to last though. I have light positioning in gold miners, but we have parameters as to when this would become a real bull trend. The thing is, a real trend signal would afford everyone a chance to get on board for an extended period. There is little need for a lack of patience or getting swept up in inflammatory events in the moment.
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