Here Comes The Fear

It's ok to buy volatility, as long as it does not include gold? Gold is not only a favorite currency of 19th century cowboys and druids but also global citizens of the 21 century. This ‘favoritism’ manifests itself as rising gold prices across all global currencies.

Watch how connected players use fear as a tool to reposition money into the weakness. These paper games (i.e. operations) while still effective no longer carry the punch of the old days. The physical market is beginning to flex its muscles.

Headline: Leo Grohowski: Volatility’s a Buy, but Be Careful With Gold

BNY Mellon's Chief Investment Officer Leo Grohowski dropped by "Breakout" Monday to discuss how investors can put their money to work safely in a "see no evil, hear no evil market." Noting that the CBOE volatility index, or VIX, is well below 20 and its 5-year average, Grohowski sees long-term options straddles as one possibility for long-term investors. Grohowski is somewhat skeptical regarding the recent torrid gains in gold, believing the favorite currency of 19th century cowboys and druids of old has gotten ahead of itself relative to commodity metals. Gold spikes tend to unwind in a hurry, leading the CIO to advise investors to use some caution in the yellow metal.

Source: finance.yahoo.com