Buying Gold is picking up. The question is will Gold take out the $1,000 price range this time? Gold investing has been quiet recently. There seems no interest in the news since Gold fell off earlier in the summer. Buying Gold has fallen off. Now since buying Gold has fallen off…will Gold take out $1,000 this time since no one expects it to?

Not to play on words there is a big difference between those who were buying gold this year…and those so called gold investing. With Gold investing, they bought gold because they thought or were scared( without any method) that gold would take out $1,000. Those that were buying gold relied on a method or system ( trend following). They purchased gold prior to the big run up in June…and exited…some with a profit and some with a small loss.

As we are trend following commodity trading advisors we know we do not know the future. We received a signal to purchase gold on 7.20.09 at a price of 945. Our initial risk was to 927. As you can see this …as in all of our trades was a low risk. The key in trend following is put on every trade. We can not choose and pick which trades we will take. We must be consistent. It will interesting if the gold market takes off.

The effect on all commodities could be fascinating. We see the weakness currently in the US dollar as a back drop. Maybe inflation (which no one expects) might become present due to debt deflation. Time will tell if the Gold Market takes off. As a trend follower, we realize that any trade means nothing. We take lots of small risk trades, the majority do not work. This does not phase us. We know that eventually we will stumble into a nice profitable trade because we are making ourselves available.

The key here is not to predict but trade a diverse basket in the commodity markets & forex markets and make small low risk bets when we receive our signals.

Andrew Abraham
www.myinvestorsplace.com

Andrew Abraham has been in the financial arena since 1990. He is a commodity trading ddvisor and co manager of a Commodity Pool. Since 1993 Andrew has been a proponent of quantitative mechanical trading programs. Andrew's major concern is not only total return on investment but rather the amount of risk that one would have to tolerate in order to achieve returns He focuses on developing quant models that encompass strict risk adherence and correlation. He has been a speaker at conferences as well as an author of numerous articles. Andrew has spent years researching ideas that have the potential to outperform indices as well as maintain fewer draw downs.

Visit Angus Jackson Partners (http://www.angusjacksonpartners.com) Contact: A.Abraham@AngusJackson.com (mailto:A.Abraham@AngusJackson.com)

© 2009 Copyright Andrew Abraham - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Comments

Post Comment (Moderated)

Subject:

Name:

E-mail address (will not be published):

Comment:

Commenting Issue - If on submitting you are returned to the main Index Page (50% chance) then your comment has not been accepted, Follow below steps for 95% chance of comment being accepted.

Click your browser Back button (from main index page).
COPY your comment text from Comment box (i.e. copy to clipboard).
Press PAGE Refresh - You should see the message "You are not authorized to carry out this operation"
Paste your comment back into the comment text box.
Click Submit - If everything goes okay you will remain on the article page with the message "Your comment was held for moderation and will be reviewed shortly".
If instead you are again returned to the main index page then repeat 1-5, alternatively EMAIL to comments @ marketoracle.co.uk quoting the article number.

The Market Oracle is a FREE Financial Markets Forecasting & Analysis web-site.
(c) 2005-2011 MarketOracle.co.uk (Market Oracle Ltd) - Market Oracle Ltd asserts copyright on all articles authored by our editorial team and all comments posted. Any and all information provided within the web-site, is for general information purposes only and Market Oracle Ltd do not warrant the accuracy, timeliness or suitability of any information provided on this site. nor is or shall be deemed to constitute, financial or any other advice or recommendation by us. and are also not meant to be investment advice or solicitation or recommendation to establish market positions. We do not give investment advice and our comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to enter into a market position either stock, option, futures contract, bonds, commodity or any other financial instrument at any time. We recommend that independent professional advice is obtained before you make any investment or trading decisions. By using this site you agree to this sites Terms of Use. From time to time we promote or endorse certain products / services that we believe are worthy of your time and attention. In return for that endorsement and only in the cases where you purchase directly though us may we be compensated by the producers of those products.