As a contrarian investor, I look for good entry points on my investments and gold is starting to look good. While everyone is selling gold I’m looking to buy my first lot of GLD, the gold ETF, if and when it hits $100.
Can it go lower, surely but gold is something I want in my portfolio as an added measure of diversity. If gold does goes lower, I will consider a second lot.
As you can see by the chart of GLD, Gold has dropped to a new fresh set of lows. It could be argued the low price is due to low demand, a strong dollar, threat of higher interest rates, a rising stock market and more.
But if GLD does hit $100 it could go up just as easily. Eventually the strong dollar will weaken and as world economies pickup, so will demand for gold. With geopolitical uncertainties surrounding ISIS, Iran, the middle east and the Ukraine, the next act resulting in widespread FEAR could easily move gold higher.
With stocks hitting new highs I’m on a holding pattern. GLD looks ripe for new investment money.