Gundlach steps into the gold miners

"Do not sell your gold," says Jeff Gundlach, suggesting the yellow metal could hit $1,350 this year. "If you want to speculate, I would be on the long side of the miners." He's long some of them and making some money lately, but overall losing cash on the trade.

Gundlach scratches his head over the giddiness with which many analysts greet declines in the gold. It's just another asset, after all.


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Comments (16)
  • idkmybffjill
    , contributor
    Comments (1914) | Send Message
    The reason they have giddiness? Probably the same giddiness that gold bugs have over other asset classes dropping while gold rises.
    14 Jan 2014, 04:54 PM Reply Like
  • CoinsK
    , contributor
    Comments (3683) | Send Message
    And you will be invested in what ? Obamacare .


    OBAMACARE A comment posted on the Affordable Care Act/Obamacare


    "I actually made it through this morning at 8:00 AM. I have a preexisting
    condition (Type 1 Diabetes) and my income base was 45K-55K annually. I chose
    tier 2 "Silver Plan" and my monthly premiums came out to $597.00 with
    $13,988 yearly deductible!!! There is NO POSSIBLE way that I can afford this
    so I "opt-out" and chose to continue along with no insurance. I received an
    email tonight at 5:00 P.M. Informing me that my fine would be $4,037 and
    could be attached to my yearly income tax return. Then you make it to the
    "REPERCUSSIONS PORTION" for "non-payment" of yearly fine. First, your
    drivers license will be suspended until paid, and if you go 24 consecutive
    months with "Non-Payment" and you happen to be a home owner, you will have a
    federal tax lien placed on your home. You can agree to give your bank
    information so that they can easy "Automatically withdraw" your "penalties"
    weekly, bi-weekly or monthly! This by no means is "Free" or even
    17 Jan 2014, 07:15 AM Reply Like
  • DeepValueLover
    , contributor
    Comments (11315) | Send Message
    This is the first time I've read about a true heavy noting the bizarre celebrations of gold price declines from supposedly disinterested analysts.


    No other asset class save for bitcoin excites so many in the media on the way DOWN.
    14 Jan 2014, 04:56 PM Reply Like
  • PTSD Trader
    , contributor
    Comments (202) | Send Message
    Professionals have loved shorting gold in 2013 for two reasons:
    1) Its been working.
    2) The ridiculous "end of world" dogma of goldbugs allows for their continual punishment.


    I am a trend trader who has recently gone long gold miners. My thesis for this is the dollar will test lows sometime over the next quarter. Look at the behavior of gold whenever the dollar tests lows.


    Also, I suspect 2014 is the year the short gold trade stops working. Anticipate a huge squeeze at some point.
    14 Jan 2014, 05:03 PM Reply Like
  • Booo
    , contributor
    Comments (7) | Send Message
    Declining demand based on Gold not being tied to a major currency .. makes the price of Gold WAY too high (jmo). And the miners ... what an AWFUL business to be in. All that said .. traders will try to take the price back up .. but the fundamental story is ... not so pretty.
    14 Jan 2014, 06:23 PM Reply Like
  • Equitable Research
    , contributor
    Comments (2250) | Send Message
    Suggesting it can "hit $1350 this year" isn't really going out on much of a limb… That is less than a 10% move. There is a 90% chance that gold will hit $1350 at some point this year, just based on probability theory.
    14 Jan 2014, 05:12 PM Reply Like
  • rkctech
    , contributor
    Comments (86) | Send Message
    Could you please explain a little about your probability theory. You can be as mathematical as you want.
    14 Jan 2014, 09:34 PM Reply Like
  • Equitable Research
    , contributor
    Comments (2250) | Send Message
    Sure. Tell me the last year that gold has NOT made an 8% upward move (like $1250 to $1350) at one point in the year? I just checked since 2000 and its done it every year. So my 90% probability is pretty conservative.
    15 Jan 2014, 05:13 PM Reply Like
  • Equitable Research
    , contributor
    Comments (2250) | Send Message
    Well that didn't take long, did it? Right on the doorstep of $1350 just 30 days later. Like I said, it was a virtual lock due to probability theory.
    18 Feb 2014, 01:25 AM Reply Like
  • CoinsK
    , contributor
    Comments (3683) | Send Message
    More on the doorstep of 1315 this morning. The manipulation continues.
    18 Feb 2014, 08:34 AM Reply Like
  • Molycorp52
    , contributor
    Comments (12) | Send Message
    1350,wow i`m all in.
    14 Jan 2014, 06:22 PM Reply Like
  • filipo
    , contributor
    Comments (4662) | Send Message
    $1,350/oz ?
    An opinion.....
    15 Jan 2014, 03:28 AM Reply Like
  • shymommie
    , contributor
    Comment (1) | Send Message
    Question I'm a newb but I'm also a hoarder of gold and a woman/ I have been watching the market on gold but as an investor of my precious medals how will it help me as this gold market goes up,how can I at the end of the day gain should I get it melted into a gold bar or keep as is
    15 Jan 2014, 02:20 PM Reply Like
  • filipo
    , contributor
    Comments (4662) | Send Message
    Jewels, medals... are considered as scrap by the market. You pay them dear when buying and only get a fraction from the original price.... usually....
    unless you manage to buy them at large discount.
    Scrap price goes up and down with the official gold price/oz but usually lags behind.
    Don't let it melted: the costs are huge.
    If you want to get rid of it, just sell it and buy bars instead (1 oz, 50g, 100g, 250g, 500g, 1kg...). Bars are more easily traded than medals or jewels and at any time you know exactly what they're worth..
    15 Jan 2014, 02:44 PM Reply Like
  • nooseah
    , contributor
    Comments (744) | Send Message
    There are broadly two types of precious metals investors:


    - those in it for a trade (long or short). Generally short-term investors.


    - those who buy physical metal as a hedge (insurance) against central bank lunacy i.e. gargantuan monetary experiments. Generally, these are long-term investors who are not sensitive to what they pay for metal, nor lose sleep at night when it falls 10% in a day. The media can be as gleeful as they like but no true hoarder cares either way.
    16 Jan 2014, 12:32 AM Reply Like
    , contributor
    Comment (1) | Send Message
    At bear market bottoms you usually see three things


    1. All or most pundits calling for further downside. You're 'crazy' (tm) to go long.
    2. Previously mildly bullish people brow-beaten into saying 'it will rise a bit, then fall more, then rise a lot later'
    3. Previously very bullish people brow-beaten into saying 'it will rise +10%'.


    basically a perfect setup here with enough people sceptical of upside for a bear market bottom in gold which will catch many by surprise.
    17 Jan 2014, 01:40 AM Reply Like
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