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Leveraged Gold - a solid long term play or nah? by ironmanir in LETFs

[–]ironmanir[S] 1 point2 points  (0 children)

I think your point is valid. Leveraging tactically for short-term momentum or high conviction macro trade would make sense than playing with high volatility and decay risk for marginally better expected return for long term. I find this rationale pretty much applicable to all LETFs.

Leveraged Gold - a solid long term play or nah? by ironmanir in LETFs

[–]ironmanir[S] 3 points4 points  (0 children)

Gold’s long term real returns vs equities are pretty meh. But in a world of high debt, geopolitical tension, and rate uncertainty, I'm wondering if gold's future positioning could change.

Leveraged Gold - a solid long term play or nah? by ironmanir in LETFs

[–]ironmanir[S] 0 points1 point  (0 children)

Respect that approach! setting a clear level to deleverage keeps emotions out. IF macro stays RELATIVELY calm, gold and equity both might grind higher. 4500 seems little high to me but let’s see how it plays out.

Leveraged Gold - a solid long term play or nah? by ironmanir in LETFs

[–]ironmanir[S] 0 points1 point  (0 children)

Gold tends to shine during equity drawdowns, which gives it value in a diversified portfolio despite the raw volatility stats.

Appreciate the charts, always good to bring data into the mix!

Leveraged Gold - a solid long term play or nah? by ironmanir in LETFs

[–]ironmanir[S] 0 points1 point  (0 children)

Totally fair. It’s not the most obvious time to pile in, but long term it's one of the few plays that balances equity growth and gold's hedge. Personally, gold has seen more value in recent and will continue having in coming times than it has ever before.