As the entire free world devalues their respective currencies (at $31.12 per USD, the Russian ruble dropped to a 6yr low this morning, putting it down -25% since the price of oil peaked in July/August of last year) in order to stoke export growth and re-flation, gold continues to look attractive. Today I am taking Gold to 6% of my Asset Allocation model, up from 3% prior.
See the chart below for my buying range in the GLD etf (in green): in terms of physical gold, this green range is the equivalent of $812-$838/oz. I’d sell some up at $891/oz (dotted red line).
Keith R. McCullough
CEO & Chief Investment Officer