Gold ETF: One of The Ways To Invest In Gold for Novice Investors
Sol Palha: Financial & Economic Insights Gold ETF: One of The Ways To Invest In Gold

Gold ETF: One of The Ways To Invest In Gold

Gold Market Crash

GOLD ETF’s One Way To Bet On Gold

GLD

This is one of the most liquid of Gold ETF’s and essentially trades like a stock. It’s not as volatile as the other ETF’s we will list but it does provide a relatively easy way for novice investors to play the Gold Markets

GLD SPDR Gold Shares daily Stock Chart

GDX

This chap is more volatile because it invests in the companies that mine the gold. When the price of gold is rising, the stock of these companies starts to rise rapidly and hence this ETF can lead to larger gains. However, one will have to time the perfect. We discuss this in more detail further on this article. Timing the market does not mean finding the perfect time to get into the market. It boils down to using mass sentiment to determine the optimal period to establish a position or close a position.

GDX VanEck Vectors Gold Miners ETF daily Stock Chart

GOLD and Gold ETF Outlook  2020

Have you noticed that all former safe-haven investments are not faring so well, Gold and bonds come to mind? Even bitcoin the so-called new saviour is fairing quite poorly. What is faring well? The dollar, there is a dollar shortage as everyone, and his grandma scrambles to get a hold of dollars. What does this mean? It means that while Gold, Silver and Bitcoin can and will rally, the dollar is going to reign supreme for years to come. It means that those experts claiming that inflation will surge and blow things apart are only at best partially correct. Inflation will rise a bit, but then it will drop again as AI-based technology keeps driving the cost of services and manufacturing lower.

Gold is currently trading higher only because of the coronavirus hysteria. Once this hysteria subsides we expect Gold to trend lower to build force for the next leg up which should take it to the 1800 to 2100 ranges.

Coronavirus Hysteria

Is the press reporting the story in an unbiased manner? Consider the following data and decide for yourself

  • Over 22K people will die today from hunger; this is probably one of the most horrible of ways to die
  • 110K have died so far from this year’s flu, and roughly 650K die a year from respiratory-related diseases
  • 70K mothers have already died this year giving birth
  • They have been over 242K suicides this year
  • 7 million children under the age of five have died this year http://bit.ly/32wVaQA
  • 25 million people die every year in road crashes https://bit.ly/2vId4UJ
  • more than 270K pedestrians die each year https://bit.ly/2QEW7BN
  • 88K will die from alcohol-related causes only in the USA https://bit.ly/2QEW7BN
  • 22K Brits will die because of prescriptions mix-ups https://bit.ly/2QDMm6U
  • Between 250K to 440K will die as a result of medical errors in America https://cnb.cx/33DF9cg
  • two decades worth of analysis reveals that over 100K Americans will die because of taking prescription drugs. A recent study states that the figure is close to 128K. https://bit.ly/39cYtOw
  • This article from the NCBI database states that 100K Americans died as a result of medical errors, and it’s dated 1999. https://bit.ly/3dxoRGy
  • 5K Americans died from drug overdoses in 2018 https://cnn.it/2xhpEL6 .

We have not mentioned Cancer, smoking and cardiovascular diseases, all of which kill millions per year. What about the innocent children dying every day? They don’t matter. What’s shocking is that the other viruses that were deadlier did not even receive the same amount of attention.

Other articles:

Why Mechanical and Technical Analysis Systems Fail

Contrarian Investment Guidelines

Inductive Versus Deductive reasoning

Mass Psychology Introduction

Portfolio Management Suggestions

Ultimate Timing Indicator

Esoteric Cycles

Introduction to Mass Psychology

Crowd Psychology and Markets

Lack of Interest in Gold ETF could lead to a strong correction