New Zone for Gold

Yeah there's a storm on the loose, sirens in my head
Wrapped up in silence, all circuits are dead
Cannot decode, my whole life spins into frenzy
--Golden Earring

Pretty much lost in all of the theater this week is that gold marked another all time high this week. Very impressive, as it seemed that the late April high would not be surmounted, and weakness near the end of June suggested that a major break was imminent.

Because gold is essentially a bet on disorder (monetary, fiscal, social, etc.), there could be many interpretations as to 'why' the breakout right here. Most scenarios end with the argument that more money printing is likely.

Late last summer I initiated a position in SLV to exploit a breakout in silver wherein I added more shares as prices went higher. Such pyramid trades are usually not how I roll, but it can be an effective way to play a strong trending move while using higher prices to help manage risk.

In the next week I will be looking for entry points in both GLD and SLV using a pyramid design.

position in GLD