Why Precious Metals And U.S. Treasuries Aren't Good Bets Against The Current Uncertainty

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#1 Wed, Sep 7, 2011 - 4:58pm
Portland, ME
Joined: Jun 17, 2011

Why Precious Metals And U.S. Treasuries Aren't Good Bets Against The Current Uncertainty

The guy who wrote this article on Seeking Alpha thinks that it's better to short the SPDR S&P 500, or buy calls AND puts on the S&P 500 VIX Short-Term Futures ETN (VXX), than to buy gold or silver.

Is this sound advice?

Here is the article link: https://seekingalpha.com/article/292113-why-precious-metals-and-u-s-trea...

Here is his reasoning:

"Precious metals are caught at the crosscurrents of a bearish trend (the recession), and a bullish trend (the sovereign debt crisis). That’s why they aren’t good bets against the current uncertainty, especially after their big run up. iShares Silver Trust (SLV) is up 350 percent since early 2009; SPDR Gold Shares (GLD) is up 100 percent; and Freeport-McMoRan Copper and Gold (FCX) has soared 400 percent."

Edited by: Diamond on Nov 8, 2014 - 5:31am
Wed, Sep 7, 2011 - 5:19pm
Joined: Jun 15, 2011


This guy is talking about making USD, which is quite pointless in an environment of endless currency debasement. Bubble is when everyone is greedy, but I think now there's much more fear about gold crashing in the mainstream media, rather than the greed typically seen in a bubble where everyone from your neighbour to the cab driver are loading up.

Tue, Sep 13, 2011 - 1:12am
Beaverton, OR
Joined: Sep 12, 2011

Seekingalpha is about as mainstream

as CNBC, so I would take anything they say with a grain of salt.

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