CME has finally relented and also raised gold margins, as we had expected. The new maintenance margin is up from $4,251 to $4,500, a minimal increase just to allow the CME to have the option (and making speculators well aware of this) of hiking rates again at any point it so chooses. All in all, all is now fair in fighting excess record liquidity.You can always take the cash in by physical gold if that makes you feel better.it should make you feel better, because again, the GLD is not gold.
Tuesday, November 16, 2010
Trade Update: GLD
Stops have been hit on the GLD(IAU). I know it's anathema to Gold bugs to even consider selling gold. But the GLD is not the gold, its paper, pure paper. We first entered this position long at $91.47 and were stopped out at $131.25, for a gain of $3978 if you were along a hundred shares. But like it or not the GLD is rolling over, as more shakeups are on the way.