My Problem With Gold: Joe Terranova

After word that some big-name gold bugs were sticking with the precious metal, there was good reason to remain wary, Joe Terranova of Virtus Investment Partners said Monday.

"I would caution those that are going to buy gold right here: Understand, the problem that I have with it is the lack of a central bank willing to step up and say – besides Sri Lanka – that they would be an aggressive buyer of gold right now if in fact Cyprus and others needed to be sellers," he said on CNBC's "Fast Money."

"So, longer term, I'd be cautious," Terranova added.

Hedge fund manager John Paulson, a gold bull, issued a note to investors that explained he was still positive on the trade.

"We see considerable upside from the event positions within the portfolio," he wrote. "Furthermore, we believe there will be significant upside when the gold sector revalues."

OptionMonster's Jon Najarian said that he had played gold via exchange-traded fund GLD, selling puts on it.

"We got right down to the levels that we had heard a number of technicians talk about — Louise Yamada among them — saying, basically, 1,360 or so would be a screaming 'buy,'" he said. "We have screamed up about, what, 60 points from that level for the precious metal."

Najarian also noted that volatility had been so high.

"Just an easing in panic level brought down the value of many of those puts pretty dramatically, and I'm sticking with that position," he said.

Trader disclosure: On April 22, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Simon Baker is long JPM; Simon Baker is long AAPL; Simon Baker is long BAC; Simon Baker is long FB; Simon Baker is long MSFT; Simon Baker is long GOOG; Simon Baker is long NFLX; Simon Baker is long QCOM; Joe Terranova is long VRTS; Joe Terranova is long SJM; Joe Terranova is long IBM; Joe Terranova is long SPLK; Joe Terranova is long SWN; Jon Najarian is long MSFT; Jon Najarian is long CMG; Jon Najarian is long GOOG; Jon Najarian is short GOOG calls; Jon Najarian is short GLD puts; Jon Najarian is long DWA CALLS; Jon Najarian is long LULU CALLS; Jon Najarian is long AMZN CALLS; Jon Najarian is long EA CALLS; Jon Najarian is long FXI PUTS; Stephanie Link is long AAPL; Stephanie Link is long GS; Stephanie Link is long CSCO; Stephanie Link is long FB; Stephanie Link is long GE.