I find that for me, being a history buff makes it almost impossible not to be a believer in the metal that has been a fixture and sign of value and wealth since ancient times. I am a gold bug and have been since I first started in the commodities business in the early 1980s. There is no other asset that gives a person the same feeling than gold. Holding a kilo bar of the yellow metal is a feeling that no other investment can elicit. Even when the price was trading at $300 per ounce or below, the bar was worth almost $10,000. In those days, I would think to myself; I'd rather have that bar in my hand than a stack of one hundred, one hundred dollar bills. On June 27, at the $1408 per ounce level, that bar is worth over $45,000, and I'd still rather have it than the cash it represents.
As humans, we can never own gold; we pay to hold it for our lifetime because all of the gold ever mined in the history of the world still exists. Currencies come and go, and the note could never do for me what gold does. The gold market traded in a $331.30 range from December 2015 through June 19, 2019. The range was in place since April 2014, for over one-half of one decade. Last week, gold moved outside of the band, and now it looks like it could be on the verge of a parabolic move to the upside. If gold is going a lot higher in the short term, the VelocityShares 3X Long Gold ETN product (UGLD) will magnify the price action for nimble traders looking for a leveraged instrument to turbocharge what could be the next leg in a bull market that started in the early 2000s.