   |
|||
Gold Traders are Incredibly Optimistic about their PessimismHoward Marella The majority of "Gold Bugs" passionately believe that gold is the only commodity that can substitute for currency and economic stability. And they may be right! While the demise of the U.S. Dollar and a collapsing stock market would certainly have an impact on the price of gold, there are also other reasons to join "the optimistic pessimist club." Other factors impact the decision to trade the "yellow metal," such as Central bank sales, lease rates, public perception, fund trading and seasonal volume, and these factors also should be considered, because even though the Gold Bugs make a valid point, the stock market and the Dollar may not be ready to throw in the towel just yet. Even if they're not ready to throw in the towel, I still like gold and we have the potential to do well either way. Traders who think that the stock market can't continue higher aren't necessarily on the other end of the spectrum from the Gold Bugs. The ironic thing is that the stock market bugs and the Gold Bugs have the potential to do well at the same time because of recent phenomenon [phenomena] like Exchange Traded Funds (ETFs). Theoretically, core asset price inflation can go hand-in-hand with commodity price inflation, as experienced during the first half of 2006, where the stock market and gold prices continued on upward trends together. Gold and other metals are starting to show signs of strength again and the leverage that is available to futures traders can be used to take full advantage of another move. Traders can also protect themselves against volatility in several ways while still taking advantage of this leverage. Please see the article, "The Allure of Trading Gold" by Jack Bouroudjian, from October 4, 2006, for a broader explanation of the benefits of trading gold futures. So, Gold Bugs, keep on believing. As the old saying goes, "When you are right, you are right." But don't think that you can't find opportunity while the stock market and the Dollar hang on (even if it may be temporary). "Is it difficult to open a futures trading account?" It is very simple to open an account with Brewer Futures Group. It can be done electronically by visiting www.BrewerFuturesGroup.com. Please make sure to read and understand the risk disclosures and contractual agreement required to open an account, as futures trading involves substantial risk and is not suitable for all investors. If you have additional questions, please do not hesitate to contact me. For your Trader's Gold Package, Click Here. Howard W. Marella DISCLAIMER: Trading in futures and options involves substantial risk and may not be suitable for all investors. The value of futures and options may fluctuate and investors may lose all or more than their original investment. The impact of seasonal and geopolitical events is already factored into market prices. In no event should the content of this correspondence be construed as an express or implied promise, guarantee, or implication from Brewer Futures Group and its subsidiaries and/or affiliates that you will profit or that losses can or will be limited in any manner whatsoever. Past results are no indication of future performance. Information contained in this correspondence is intended for informational purposes only and was obtained from sources believed to be reliable. Information is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted.  321gold Inc |
