When is Bad actually Good?
Well they say the sky's the limit
And to me that's really true
But my friend you have seen nothing
Just wait 'til I get through...
Because I'm bad, I'm bad - come on
(Bad bad - really, really bad)
Sometimes with trading its worth looking at what's 'bad' because it might become 'good'. In my weekly trading system, I trade shares, property, gold, and commodities. (I also hold some bonds, but I don't trend trade them). Gold has done really well in the past week or so, and I am very happy to be 'in' gold. In other words, the percentage of my portfolio that I allocate to gold is fully invested, rather than being in cash. But is gold the best thing to be in, or should I consider something else?
It seems that silver is a more volatile market than gold. When things go badly, silver often drops in price by more than gold, and when gold rises in price, silver rises further.
But, it seems that there is another area worth exploring in order to get even better returns; gold miners, and more specifically, junior gold miners. They have been bad, the weekly graph, above, over two years, shows how much worse they have done than gold in recent times, but it looks they could be becoming good, and possibly do rather better than gold itself...... just a thought: it might be better to be invested in gold miners rather than buy gold!
I hold both gold and a gold miners ETF, so I guess I'm sitting on the fence. There is something reassuring about actually owning the gold itself.
Are you interested in learning about how I trade? I am not a financial advisor, and cannot give financial advice. All I talk about, I actually do myself. Members of my site have access to manuals about my weekly asset allocation trading system that uses market timing and learn what trades I am doing every week, via a private Facebook page. Members also have access to my daily trading system, that uses spread-betting, so that it is tax free! It only takes me 10 mins per day to operate it. Talking of gold, my daily trading system indicated to me to buy gold on Tuesday this week, and so far the trade is up £421.65 in just 4 days! Awesome, or should I say 'Bad, really, really bad'. Let me know if you want to join....