Gold prices surged to a record high on Wednesday as investors piled in, seeking safety from turmoil in government bond markets and the risks of Greece's debt crisis spreading to other countries.
Is gold a crowded trade or can investors still get in? Scott Redler, chief strategic officer at T3live.com and Jim Iuorio, managing director at TJM Institutional Services shared their insights.
“We have rules that you never buy into historic highs and you never buy when there’s excitement—you get involved before and when it breaks out and that was earlier last week or this week,” Redler told CNBC.
Redler advised long-term gold investors to sell some today.
“And if you missed this move, I’d wait to see if gold pulls back to $1220 to $1225 and that’s where you get involved, if you’re not involved already,” he said.
In the meantime, Iuorio said there’s still room for investors to get into gold and doesn’t see prices falling in the near-term.
“Monday morning, when all the safety vehicles traded off, gold had every opportunity to trade lower, but it chose not to and people were still buying it,” he noted. “I think there are pools of money that are itching to get in.”
Iuorio added that silver might also be a good place for investors to consider.
“Over the last three months, silver is leading the pack and it crosses over from the precious metals to the industrial metals space too you can make more of an argument to buy silver,” he said. “So I think silver’s the good trade, not the catch up trade.”
SPDR Gold Trust
DB Double Gold Long
Redler’s Gold Leaders:
Gold COMEX (June)
- Watch Redler's Previous Appearance on CNBC (May 5, 2010)
- Watch Iuorio's Previous Appearance on CNBC (May 12, 2010)
More Strategists on Gold:
- Gold Price May Still Have a Way to Go: Analysts
- 'Fast Money' Traders: Gold Finds Identity Amid Currency Crisis
- What Investors Should Know About Gold Rally
CNBC Data Pages:
No immediate information was available for Iuorio or Redler.