Founders: A Serious Word About Gold Volatility as Directional Indicator and Relative Value Trade Choice

Summary:

• Is getting cheap for a good reason.

• The price of being a good market again..

• As Gold increases in attention it begins to re-attract:

  • Money managers and macro discretionary players, many of which are biased to SELL calls

  • Producers who will return to hedging output using collars again to max shareholder value

• The Parallels: Oil for the better part of the past 30 years, and Gold when GLD options matured.

• Bottom Line: GVZ is not as reliable as it was. It's re-evolving as oscillator in a market attracting more and deeper pocketed players