Maybe gold isn’t all glitter — especially in a crisis, “Fast Money” traders said Thursday after the precious metal saw a midday sell-off.
“I still think that somebody in the equity market that’s sort of linked to gold — without naming names — probably just continues to get squeezed out of his or her gold position,” trader Guy Adami of Drakon Capital said.
“I happen to believe that everything going on in the world is the exact reason you want to be long gold, frankly,” he said. “All things being equal, it hasn’t had that big of a sell-off.”
U.S. gold futures slipped more than 2 percent, trading around $1,709 midday.
Adami estimated gold would be priced north of $2,000 per ounce sometime next year.
“Every sell-off in gold is a buying opportunity,” Adami said. “And trust me, I am not a gold bull by any stretch of the imagination.”
On Wednesday, widely followed economist and publisher Dennis Gartman trimmed his gold positions in favor of equities.
“It’s worth noting that commodities are really, by far, the weakest instrument today,” trader Steve Cortes said.
Cortes said he is long on the U.S. dollar and cheering against gold.
“When there’s serious market stress, the run is not for gold,” he said. “It’s for the United States dollar and treasuries.”
Patty Edwards of Trutina Capital said she continues to be long gold but has reduced her position in the past two months to about 5 percent for most of her clients.
“I’ve also been adding to my stock positions,” she said.
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Trader disclosure: On Dec. 8, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders: Adami owns C; Adami owns GS; Adami owns MSFT; Adami owns INTC; Adami owns AGU; Adami owns NUC; Adami owns BTU; Najarian has long call spreads AAPL; Najarian has long call spreads MSFT; Najarian has long call spreads IBM; Najarian has long call spreads MCD; Najarian has long call spreads HAL; Najarian has long call spreads RIG; Najarian has long call spreads CAT; Najarian is long CIGX; Najarian is long CME; Najarian is long CBOE; Kelly is long Euro; Kelly is long Italian bonds; Kelly is long IWM
For Patty Edwards
Trutina Financial is long GLD
Trutina Financial is long MCD
Trutina Financial is long COST
Trutina Financial is long CME
Trutina Financial is long INTC
Trutina Financial is long AMZN
Trutina Financial is long AAPL
Trutina Financial is long HAL
For Tom Ajamie
For Tim Butler