SPDR Gold ETF (GLD)

Summer is usually good for Gold. Don’t invest solely on seasonals. He thinks gold has bottomed. But major support for a year and a half is now broken. There is a risk of the bigger corrections coming into play. Could go to mid-$1100s. You can trade it, selling into upper $1400s for gold.

He cut his position in half on Friday as the key support level broke. He would buy back in now at a half position as we are so over sold right now. The break is big, institutional type trading. There is probably another leg down but there is probably another trading bounce here.

(Top Pick Apr 16/12, Down 5.36%)

Does it make sense to hold this in a TFSA and what percentage should it represent of an overall portfolio? Wouldn’t want this to be the totality of your TFSA. Doesn’t like things where you can’t claim capital losses and this one can be quite volatile. He would not want to have more than 5%-6% of gold in a portfolio.

Gold. Sees a short term risk that the key support around $15.25 gets taken out. Long term we have to be bullish. Seasonals are not bullish until summer time again. You could trade GLD up to a gold price of $16.25.

About 1800 is the big resistance for the last year ago. If we get above that stocks will go too. If we go below about 1650 it would be a negative in his mind.

No problem holding this for long periods of time. Only 10-15% of the ETF is held in paper form. The rest is gold.

Inflation is not the issue but rather all this stimulus. Whenever we increase the money supply, value of gold should rise as currencies are debased. Will go on through the first half of next year. This is not a long-term buy and hold, however.

Has been buying since May in Canadian and US. He sold all his bullion last August. It is going to reward him. It is one of two asset classes that are long-term trends up. Gold and bonds.

Likes this one right now. Has got a nice bottom that’s been tested for a long time. Gold is breaking out into new highs now that we haven’t seen for a little while.

When you look at spider trust, it is surprising how much gold is held within it. There has not been a lot of selling out of this particular fund. He has not studied Sprott vs. the mint. The move in gold is more important then the relative move in the different ETFs. He uses GOLD equities such as Gold Corp. He wants dividends, which you don’t get from bullion.