Trade Exit: Sell Gold, Hold Gold Miners
Well, the long gold trade didn’t quite work out - Buy gold
Why? Because:
- After I bought, gold dropped further & then recovered
- Indian gold ETFs were trading at a 5-10% premium due to shortage of physical gold. This premium has now dropped, thus negating the benefit from the small up-move in the gold price.
- I don’t like the way gold prices are behaving. There was not much of a bounce given how oversold it got, and the commodity sector in general continues to crap out. [See platinum's drop early this week.]
I bought @ 1175 & sold @ 1185 - essentially broke even after factoring in brokerage, STT, etc. I am still holding on to the long position in gold mining stocks, via the DSP-ML WGF: Buy Gold Mining Stocks.
They are performing much better than the precious metal itself, and have the potential to move up another 10% rather quickly.
PS: And right on cue, GOLDBEES crossed 1200 today, after I got out. Sorry for holding it back! 
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