Newgold Down

[GGG]

Why is GLD down today while gold is up?

[grommet]

R/$

[#3]

its cos the strenght of the rand canelled the golds gain, rand * gold price = newgold price ( less all the costs) , hence the rand at 6.80 * 1370 = R9316/100 = R93,16 less 2% costs = R91.29, which was lower that the previous days price of 92.50 bucks, if u want gold exposure without the rand strengh limiting the gains then short the dollar long the rand for the same exposure (hedging)

[#4]

Hey GGG.Hi there.looks like we're Team GLD. You trading it, or just investing ? Let's brainstorm this thing.Let's use a 10k capital figure. We've got Uptrend Buy-Line at R84.We've got 40-wk MA at R87 and change.BIG SUPPORT.Trading cfds via position-sizing,using the R84 line as major support.So let's say, you have bought exposure to R50 000 of underlying GLD at R90.50.10% of that = R5000.That's the cash you need to sleep easy and cover the bet.Why ?Newgold can get rather jumpy.10% down = GLD at R81.I sincerely doubt she'll kiss the R80 line again.###Because the costs are cheap to trade, one can trade little bits and pieces.I buy say 555, and trade half of it within the trading range(R90-R93).The other half, I aim at R96 and R100.As soon as I sell a parcel of that first half.I immediately put up a buy at the R90.50 level again....and so we use the assembly-line approach.How are you doing it ? Just interested.

[SimonPB]

VI, you still haven;t ecplained to us why the Rand will crash next year .. me thinks more likely we see 6 next year ..

[#6]

Hi Simon.Yes,I'm also a Sharks supporter.Not quite as avid as you,though(heh).###The Rand. 6, you say.Mmmm.##I believe that fundamentals are going to kick in soon.Bad politics,limited import cover.Pathetic reserves.Fundamentally: BAD.So we'll tick that one. Carry-trade keeps it afloat.Nothing else.Also,please note, the Govt is making more and more noise about another rate-cut,relaxing exchange-controls from Jan 2011.These are all Rand-negative.The GOVT wants a weaker Rand.It will be politically expedient.The Unions will love it too.Votes,etc.## So, I just see the Rand getting hurt,because it is such a weak currency.The WORLD'S WORST PERFORMER IN 2008.That's right....worse than Iceland.## Maybe we will see R6.Nothing is impossible.But I certainly wouldn't be a Rand-bull from R6.73 to R6.Enormous Chart resistance.Nah.

[SimonPB]

hmmm .. OK, so in shhort what wiill weaken the Rand is an ouut flow of money .. that we can agree on ..

so what trigggers that? if we cut rates to 1% there will still be a carry trade, so that ain't happening .. as for polotics etc. the market cares nothing .. so that leaves another vast crisis as we saw in 2008 .. that's the only thing that see massive out flows ..

[#8]

QE2 is the beginning of the end of the Western Capitalist Banking system.Actually, it started with Bear Stearns in late 2007.Anyway,my point is...no way one can trust the Rand. That's why I'm into GLD for Investment and Trading.Nothing else,as at.I'm just an old scar-face trader keeping the risk-profile low.When this mkt pulls back violently...sure,let's dig into some equities.Until then,GLD and Rand-bearish.Roll the Dice !

[SimonPB]

ya well .. I can't argue against end time visions ..

[sponono]

VI: now I know what your real name is: Dr Clive Roffey (cash or gold). Right?

[GGG]

Hi VI GLD is my first CFD trade. My stratagy is similar to yours. What level are you setting stop losses?

[#12]

on a share i'd be far stricter.This is an easy-money,R84 as the floor,etf trade.There's a big demand-pull on gold.huge,in fact.on this one, i just make sure position-sizing and back-up cash are friends.