Was gold too high to buy in Q4 2009? That’s when George Soros became massively bullish on gold, and more than doubled his original position in GLD. The fourth quarter is highlighted in the red rectangle in the chart. Compare the prices within the boundaries of the red versus where it was before, and where it’s gone since.
Since the beginning of Q4 last year, the yellow metal has appreciated 20 %. Since his position was approximately 9 % of his portfolio, we can deduce that the metal’s performance could have added almost 2 % of net gains to Soros Fund Management.
Psychology, self-awareness, and emotional intelligence are the keys to whether you’re made for trading. How many readers said “I’m going to wait for a pullback?” “It’s too high now.” “All the bad news is priced into the market already”…famous last words.
It did pull back…did you buy some? Why not? What were you feeling at the time ? (not thinking, but what were you feeling?)
Who could have figured on the Euro bailout package? Greek tragedy? (besides George)
What do you make of the fates of Italy, Portugal, and Spain? How about the UK?
Then the United States – are we immune from the bumper-crop in US dollars that we’ve printed?
With all this in mind, do you think gold is too high?