It will not harm to make some money. This run on gold combined with Rand weakness has circa 3 months on the next leg to peak and very much higher to go thereafter. The flip side is that there will be nothing else to go long with.
With CFD's etc you had best be thinking of an exit. Gain from yesterday going fast and holding interest could be more than the profit you expect to make and the "top-up" option looks likely to set in as well.
HG, I told you your holding costs on CFD's will erode any gains. You need to seriously condider closing out IMO. Yes it might spike after you do and it might fall while you hold. IMO CFDs are short termintruments and if used correctly could be good profit builders, but incorrect use you loose.... OMO
don't think I agree with you regarding CFD holding costs. You can definitely use them for longer term holdings, you just have take the holding costs into your ROI targets - a share only has to climb above JBAR rates over that time period for you to be in the money. SSF's and warrants, thats a different story - although less so on SSF's, but the rollover costs should be a small concern
The interest does tickle a bit but the profits are huge. I set myself an exit strategy and I should stick to it. I was forced to abandon my exit strategy, needed the money, two weeks ago and exited at small loss. The next week I would have made 25% profit. I think I'll stick to my strategy this time around.
Skaap, agreed that better than SSF and definately better than warrant but still many newbie gets caught with maxing the exposure/gearing and then suffer when share moves against them. Thus I say rather smaller holding or shorter term instrument. If you know the ins and outs (most traders might not fully and I admint I have had to learn fast since starting) of costs JBAR and ROI etc you could do well. I do like CFD for in between spread trading. Sometimes a warrant has a fixed spread and the share often just misses the exit, even by 1c on the underlying sometimes. So with CFD you can still exit in profit if thats your stratergy.
Like this gold is under the sea in 3 weeks I am going to dive and fetch it personal ,man maybe harmony only sell mickey mouse gold or this gold bug has been swatted GLD is like having a runny tummy you chow the gold and pass the rand and land up at break even
set up a gold matrix and you will see for GLD to go to 90 the Rand has to be about 7.2 to the dollar and gold at 1250 per ounce or 7.7 and 1175 thats how it goes with gold at 1100 the rand to dollar would have to be at about 8.2 we at 7.4 to the dollar so unless we have a big policy change we stuck mate one goes up the other comes down got more chane if the rand is at 9.5 and gold is at 950 which could happen next year if the USA increase rates