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« skoptionstrading Completes 100 Trades | Main | Compassion – Killer of Society? »
Tuesday
Jun192012

In Case Of NEW QE, Gold To $1,900-$8,500 Says SocGen

In a previous post we showed how, despite Goldman's best wishes, the market may have just priced itself out of a treat from the Fed tomorrow, and right into a trick. That said, in case the Fed has in fact succumbed to the pleadings of its superiors (read Primary Dealers) and does proceed with some seriously unsterilized dollar mauling, the next question is what is the best hedge. SocGen asked the same, and provided several strategies to take advantage of central planners exhibiting a rare case of Einstein's definition on insanity... over and over. Their "Strategy #1: Bolster Positions In Gold Ahead of QE3." Why? Because once the next round of the gold juggernaut is unleashed, gold may go to anywhere between $1900, just shy of the all time nominal high, and $8500... just a tad higher than the nominal high.

From SocGen:

  • USD 1900/Oz: To close the gap with the monetary base increase since July 2007, gold would have to rise to $1,900/oz, assuming full transmission from the monetary base increase to the gold price

  • USD 8500/Oz: If gold catches up with the increase in the monetary base
    since 1920 (as it did in the early 80s), 
    its price would rise to USD 8500/Oz.

The latter scenario is the price only catching up with where it should be. Add another $700 billion - $1 trillion for a potential NEW QE, and you get a 5 digit (and increasingly more meaningless) number.

Article courtesy of Zerohedge.


Regarding www.skoptionstrading.com. Today we closed a trade involving the S&P which generated a profit of 25.61% and was opened just 8 days ago, the charts and stats will be updated shortly.

Our annual performance figures are as follows:

2009 We made a profit of 23.89%

2010 We made a profit of 158.66%

2011 We made a profit of 40.95%

In 2011 we outperformed:

S&P by 42%

HUI by 53%

Gold by 31%

Silver by 41%

The 2011 Annual Report by be accessed via this link.

 

Our trading success rate is 90.81%

89 profitable trades out of 98.

Our model portfolio is up 447.55% since inception

Also many thanks to those of you who have already joined us and for the very kind words that you sent us regarding the service so far, we hope that we can continue to put a smile on your faces.

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