Gold Futures Lie Ahead
Gold Futures Lie
Ahead
9/18/07
Gold is going up and is going to continue to go up until the next Fed
meeting at the end of October. And it is official - interest rates have been
cut by half a point and all of the emotional emini speculators have bought
in. What a good day for all of the emini indices. Gold is on my mind again
and here's why.
Follow the Yellow Brick Road
Many believe that the rate cut should not have happened, but nevertheless,
it did so now a few speculators, hedge fund managers, and big institutional
investors can make money. What's done is done. So what can we do to make
money off of what was done? Invest in gold futures.
Let's argue this first. Gold is over $700 an ounce right now which is pretty
high. At a glance, that's a pretty bad entry point, right? Not at all. See
the U.S. dollar, which just recently hit an all time low against the Euro,
is headed even lower. Our precious dollar was recently sacrificed for the
sake of institutional investor's ability to borrow at cheap prices. They
kicked the dollar while it was down. This is a classic opportunity to get
into a gold futures contract or two. $800 an ounce is just around the
corner.
You Can Hear It Now
What a suprise. In 3 months, take a guess at what's going to be making the
financial news headlines. Inflation. And when it does, say hurray and thanks
for the suggestion to invest in gold futures when the Fed was beating the
dollar down further by cutting interest rates. I cannot see or speculate any
decent emini trading from what happened recently with the rate cuts, but I
can see gold.