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Gold Is an Investor’s Paradise: iiTrader’s Baruch Says

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With so much attention being given to the record highs being set in the stock market, not to mention the jitters that accompany that, it only seems fitting that other asset classes might currently be worth a look. In fact, aside from the 30% drubbing that has been unique to Volatility (^VIX) lately, Gold stands almost alone in terms of its conspicuous under-performance, and that suits Bill Baruch, market strategist at iiTrader just perfectly.

"Right now, this is an investor's paradise for gold," the Chicago-based trader says in the attached video. "We haven't seen (gold) below $1500 since 2011, and right now we're pressing the lows on the year and I think it's a great buying opportunity."

To be more precise, this precious metal and previous reserve currency is within 3% of its 52-week low of $1535, which leaves it about 13% below its 52-week high of $1800. While Baruch admits "the slow grind higher for stocks" has diminished a lot of the luster of gold, he also believes that's a trend that can, and will, reverse quickly.

"We may still flush out a bit lower," he says, "but we could go from $1600 to $1700 in such a hurry that if you're not in, you're gonna miss it."

As he sees it, $1800 is a completely doable year-end price target and 20% gain opportunity, as long as the low-end of its price range holds.

"If we hold $1500, we're going to see $1800 by the end of the year," he says, citing short-sellers, frustrated gold bugs and economics skeptics in general, as well the prospects for continued easing by major central banks, including our own.

"A lot of people are speculating that the Fed is going to stop (easing) after 2013," he says, "but they're not. This market is still printing and the green light is still in on gold for the long term."

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