Gold has been in its own private bear market for about eleven years now. It’s been a terrible investment, and recently, a terrible trading vehicle as well (except for metals bears). Just look at the breakdown with the continuous contract, where one major supporting trendline after another is violated.
This has been reflected quite clearly with the miners, as fund GDX shows. It has lost nearly 50% of its value in a mere three months. And keep in mind, this isn’t a leveraged fund. It’s pretty evident that the notion of gold being a fantastic inflation hedge is pure hokum.
On a completely unrelated note, this has got to be one of the most boring trading days in months. I guess everyone is waiting for the goddamn Fed on Wednesday. Snore. I’m spending my time more productively than watching this pointless ping-pong match.
