How far is gold expected to fall considering the fact that its on a rebound and yet the price is dropping?
Question:
Answer:
commodities have been slammed
so...a way to play the lower prices is to buy DBC...it's an ETF that tracks 5 or 6 commodities...SGS also...both are relatively cheap at this time... for a pure play on gold...maybe AAUK or AUY...for a pure play on oil..now that it's cheap.PEO
there is an old adage about gold and oil...the price of gold has traditionally been around the price of 11barrels of oil [some would say 12 or 13, but it's in that range]
so if oil stays at around $60 then gold should be around $660
it's a tough call to say which one will move to the other
but, in this market, and world enviroment..I feel that oil will rise to about $70 and gold will slowly creep up to $750
of course, gold could go to 450 and try to lead oil down to 45
who knows?
go with the ETFs...a lot safer and you can bail out quickly, set thin stop losses, tight margins.
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