The Ultimate Guide to Investing in Gold: How the Launch of a New One-Ounce Contract Could Change the Game for Small Investors
For years, I have been advocating for the CME to make a significant change in the gold futures market by introducing a one-ounce contract and phasing out the 100-ounce contract. Finally, my wishes have been partially granted as the CME recently launched a new one-ounce “pocket rocket” contract.
The introduction of the one-ounce contract is a game-changer for small investors, allowing them to participate in the gold market with reduced fees and without the need for large capital investments. This contract will enable investors to buy gold incrementally on price dips, sell them at a loss for tax purposes, and then purchase an equivalent amount from a physical dealer.
Despite some initial volatility in the market following the launch of the one-ounce contract, technical analysis indicates that gold is in a strong position. The daily and weekly charts show that gold is recoiling from previous resistance levels and is poised for a potential breakout.
In addition, the bond market is experiencing a rise in rates, which may shock the world in the coming years. Investors can expect a temporary dip in rates before a long-term upward trend that is unlikely to peak until 2060.
Furthermore, gold stocks are showing positive signs, with bullish patterns emerging that could lead to significant gains for investors. The GDX weekly chart, in particular, is signaling a momentum-oriented blast that could result in substantial returns for those who strategically enter the market.
In conclusion, the launch of the one-ounce gold contract and the overall market analysis suggest that now is a crucial time for investors to consider diversifying their portfolios with gold investments. By following a systematic investment approach and staying informed about market trends, investors can potentially capitalize on the opportunities presented by the current market conditions. Have a golden day!