Rajandran R Telecom Engineer turned Full-time Derivative Trader. Mostly Trading Nifty, Banknifty, USDINR and High Liquid Stock Derivatives. Trading the Markets Since 2006 onwards. Using Market Profile and Orderflow for more than a decade. Designed and published 100+ open source trading systems on various trading tools. Strongly believe that market understanding and robust trading frameworks are the key to the trading success. Writing about Markets, Trading System Design, Market Sentiment, Trading Softwares & Trading Nuances since 2007 onwards. Author of Marketcalls.in)

Gold to Hit All-Time High? How Small Investors can invest in Gold?

1 min read

I know, in this Bitcoin era if someone is talking about Gold they could be either a 70s kid or an 80s kid. Well, I’m from the 80s. Its been a very long time that we looked into the trend analysis and short-term view on gold.

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Gold is in a downtrend from Aug 2020 onwards when the coronavirus crisis is heightened. Weekly and Daily trend is still maintaining the trend down. However monthly remains sideways for almost the last 4 months.

Interestingly most of the trader’s interest shifted towards equities and digital currencies and for time being gold is for legacy traders.

Is the Gold Trading dead?

Here is the Gold to Bitcoin ratio chart comparison. The ratio is dead by all means since the start of Bitcoin indicating that new money prefers Bitcoin over Gold.

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But What if there could be a mean reversion in the ratio? Will that be a sound strategy to invest in Gold?

Probably what I’m thinking is it is one of the best right times to bet on the dead Gold/Bitcoin ratio. Mean reversion in the Gold/Bitcoin ratio could be a potential investment opportunity in Gold.

By all means, Bitcoin is one of the super overcrowded trades on the entire planet.

Meanwhile Goldman last week called for  new commodities supercycle

What is a supercycle?

A supercycle can be defined as an extended period of booming demand for a wide array of commodities, leading to a surge in their prices, followed by a collapse of demand and eventually prices

How Small Investors can invest in Gold?

Small traders can invest in GOLDBEES ETF with a minimum investment starting as low as Rs40. Can be bought and sold in NSE and BSE

Investing in Gold Bees

Gold Bees ETF is designed to track the performance of physical gold.

Nippon India ETF Gold BeES

1)Expense Ratio: 0.82%
2)Exit Load : 0%

GOLD Bees Quarterly Timeframe Charts

Due to lockdown and issues in physical deliveries, many commodity investors have also shifted to gold ETFs. It is easier to buy and sell ETFs via mobile trading apps.

at the time of writing MCX Gold Futures is trading at Rs46,197 per 10 gram

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What do you think Gold is Poor man’s Bitcoin?

Rajandran R Telecom Engineer turned Full-time Derivative Trader. Mostly Trading Nifty, Banknifty, USDINR and High Liquid Stock Derivatives. Trading the Markets Since 2006 onwards. Using Market Profile and Orderflow for more than a decade. Designed and published 100+ open source trading systems on various trading tools. Strongly believe that market understanding and robust trading frameworks are the key to the trading success. Writing about Markets, Trading System Design, Market Sentiment, Trading Softwares & Trading Nuances since 2007 onwards. Author of Marketcalls.in)

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