Add More Gold Just for A Little While
04/07/2017 2:50 am EST
We currently have enough gold in our portfolio to take advantage of the uptrend, but I want to add a little more, just for a short while and for a specific reason.
The SPDR Gold Shares (GLD) is the oldest gold ETF. It used to be called streetTracks gold ETF or something like that. We've owned it in the past and made a little bit of money on it.
The reason I want to take a flier in this is that I noticed in the NYSE short-interest stats this week that short-interest in the ETF increased 73% over a two week period prior to the Fed meeting.
Some of this short-interest may have been covered already, but the rally hasn't gone on that long, so I suspect that if gold continues to rise, we'll see it driven higher faster, as more traders have to cover their shorts.
Keep in mind that this ETF, more so than most, is really the home of momentum traders and weak-handed investors whose reasons for owning or selling a stock follow only sentiment, not math or logic. SPDR Gold Shares are a speculative buy up to $120. This is only a short-term trade.