Wednesday, 6 June 2012

Long on Gold

Before the budget I had a short on the FTSE based on all the unresolved issues in the eurozone I felt the index was a little too optimistic. Unfortunately I did not follow through with this (read something about trading before the budget more fool me) and closed out when it was 70 points into negatively territory. What a shame considering what the FTSE then proceed to do in May almost a carbon copy of last May 2011. My instincts were good, my execution was poor.
However I recently looked at some gold charts and figured that gold seemed to have stabilised so it was worth a punt. There was a bit of good fortune as my decision to go long on gold seems to have coincided with the prospect of more QE. Long term I think gold will continue to do well with the amount of money printing and the total uncertainty of fiat currencies at the moment. As proof I've uploaded the transaction history where it shows I've made a nice healthy 70 point gain.

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