Sunday, November 8, 2009, 11:31AM ET - U.S. Markets Closed.

Why Commodity Bull Eric Bolling Is Short Gold

Posted Jan 08, 2009 07:30am EST by Aaron Task in Investing, Commodities
Eric Bolling, a former NYMEX commodity trader, believes massive government spending will devalue the dollar and ultimately benefit commodities.

"Across the board I like commodities: We have a President-elect who's going to come in a reflate the economy by printing money," says the Fox Business News host. "As the dollar goes down, things denominated in dollars - gold, platinum, wheat, soybeans, oil - have to go up in price."

So why does he recommend shorting gold, which most people think of as the classic anti-dollar play?

Bolling isn't anti-gold but believes the yellow metal has become overvalued relative to platinum; thus, he's currently short gold and long platinum via a paired trade. On Wednesday, gold fell 2% to $840 while platinum rose 1% to $971; historically, platinum has traded at a much higher dollar value than gold.

"This trade has a long, long way to go," Bolling says.

Note: The accompanying video was taped Wednesday morning, prior to the session's steep declines in commodities, most notably oil.

96 Comments

ACE
ACE - Thursday January 08, 2009 07:39AM EST

Platinum isnt money.Gold is.

Sidd
Sidd - Thursday January 08, 2009 07:56AM EST

Fox news report,huh.. Don't they get most things wrong..

dk
dk - Thursday January 08, 2009 08:02AM EST

Agree with Ace...find Bolling's sentiment nonsense...the governments can only manipulate the metals market for so long - once market forces regain control gold with shoot to the next resistance level.....and most are holding as money...

Reedersong
Reedersong - Thursday January 08, 2009 08:07AM EST

I like to shoot my mouth off.

Andy
Andy - Thursday January 08, 2009 08:10AM EST

Short Gold to $720 and then go long

Gold
Gold - Thursday January 08, 2009 08:12AM EST

Silver is just as much undervalued vs. gold. Silver was $21 when gold was $1000. Now its $11. Only the COMEX banker shorts have the lid on it, and it will eventually blow off. There is only 600 million ozs of silver mined worldwide per year and most of that is consumed by industry. Yes. Only 2 ozs of silver per American... Think about the rest of the world when gold explodes... Gold is too expensive for 90% of people - but not silver.

taopraxis
taopraxis - Thursday January 08, 2009 08:13AM EST

Too clever by half.

JoshS
JoshS - Thursday January 08, 2009 08:15AM EST

Pump and dump.

Kimberly
Kimberly - Thursday January 08, 2009 08:17AM EST

If you get your trading info from websites like this you are a little guy and should not be shorting or short term trading anythng. Go Long gold and silver and don't gamble your hard earned money.

ussinvest
ussinvest - Thursday January 08, 2009 08:24AM EST

Hey reedersong, me too, here goes: Well if the stimulus doesn't end up working out and just hyperinflates the dollar, maybe we should dump gold and silver and pick up some brass and lead. =)

__A_YAHOO_USER__
__A_YAHOO_USER__ - Thursday January 08, 2009 08:26AM EST

The answer is Viena Sausages..................It is better than gold ...........Invest in European Stock concentrate on British Market Blue Chip and Utility Companies, grab the opportunity while the Dollar is strong..............Tips, Glaxo, Bats, Bp, Shell, Tesco, United Utilities, National Grid,Diageo , Aztra Zeneca,Compass Group,SSE Energy...........It will give you good dividend income for life and capital gain for the future....... Sounds interesting.........This according to the researcher........and common people like me .......Okay Bonanza........I read on the Investor Chronicle from Internet..........Ask the advice of your broker about it............It is not my tips ...it is according to the magazine I read........What do you think.......

Luis G
Luis G - Thursday January 08, 2009 08:32AM EST

I suspect the major reason why the divergence in Gold/Platinum ratio has to do with the fact the latter is an industrial metal and gold is not.

Thrift Maven
Thrift Maven - Thursday January 08, 2009 08:43AM EST

Lets not forget uranium. FRG looks especially good with it's recent buying into Canada's fourth largest uranium area for a fraction of its value.

__A_YAHOO_USER__
__A_YAHOO_USER__ - Thursday January 08, 2009 08:44AM EST

Fox financial my goodness the same people that where shouting for months and months that housing would not affect the economy. They lie and lie and lie and lie anyone getting the message here. I will say it one more time they LIE.

you
Yahoo! Finance User - Thursday January 08, 2009 08:47AM EST

Come on! It's the 25 year cycle when gold bugs come out of hibernation, flit about, mate and die off. Gold is no better over time than a 3% interest bank deposit.

Polishqueue
Polishqueue - Thursday January 08, 2009 08:47AM EST

Gold as an investment is a very different animal from gold as currency-disaster-protection. You can have it both ways, but not with the same actual gold. Investments in the future price of gold are probably best made via ETFs or stock in the companies that actually produce gold but, reinforcing what jcrowco wrote, gold you are setting aside for a currency collapse had better already be in your possession at the time such a thing occurs. Your shares of GLD or AUY will do you little good if your only option is to sell them for U.S. dollars under the sort of economic circumstances where you would need to do so.

monk man
monk man - Thursday January 08, 2009 08:50AM EST

Yet another example that it is not supply and demand the moves the commodities but the socialist on wall street with taxpayer money fresh in hand who will be the ones who bring down this formerly capitalistic country. CASH AND GUNS

wobatus
wobatus - Thursday January 08, 2009 08:52AM EST

Ace is wrong. There's no reason why gold would be inherently better "money" than platinum.

MichaelR
MichaelR - Thursday January 08, 2009 08:56AM EST

if you listen to what he says he isn't really SHORT GOLD. all he is doing is hedging his platinum play.

andy
andy - Thursday January 08, 2009 08:59AM EST

SILVER is the only way to go. It's dirt cheap and ready to explode.

Yahoo! reserves the right to refuse, or remove any comment that does not comply with the Yahoo! Terms of Service. The submission of spam, hateful, or obscene messages may result in the termination of your Yahoo! ID.
About Tech Ticker - Send FeedbackDisclaimer. Copyright © 2007 Yahoo! Inc. All rights reserved.
Copyright/IP Policy - Terms of Service - Privacy Policy - Help
Quotes delayed, except where indicated otherwise. Delay times are 15 mins for NASDAQ, NYSE and Amex. See also delay times for other exchanges.

Quotes and other information supplied by independent providers identified on the Yahoo! Finance partner page. Quotes are updated automatically, but will be turned off after 25 minutes of inactivity. Quotes are delayed at least 15 minutes for NASDAQ, NYSE and Amex. See also delay times for other exchanges. Real-Time continuous streaming quotes are available through our premium service. You may turn streaming quotes on or off. Fundamental company data provided by Capital IQ. Financials data provided by Edgar Online. Historical chart data and daily updates provided by Commodity Systems, Inc. (CSI). International historical chart data, daily updates, fund summary, fund performance, dividend data and Morningstar Index data provided by Morningstar, Inc. Analyst estimates data provided by Thomson Financial Network. All data provided by Thomson Financial Network is based solely upon research information provided by third party analysts. Yahoo! has not reviewed, and in no way endorses the validity of such data. Yahoo! and ThomsonFN shall not be liable for any actions taken in reliance thereon. All information provided "as is" for informational purposes only, not intended for trading purposes or advice. Neither Yahoo! nor any of independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. By accessing the Yahoo! site, you agree not to redistribute the information found therein.