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EP: 83 This Prop Trader’s Take on the Gold Markets

Futures Radio Show
Futures Radio Show
EP: 83 This Prop Trader’s Take on the Gold Markets
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Guest:

Ari Pine – President and Head Trader at TradeCo Global

Optimized-Ari Pine

 

Dear Traders,

Today we have a special guest for you on the show, his name is Ari Pine and he’s the President and Head Trader at TradeCo Global – a TT owned prop trading group.

Ari talks about gold and how it’s impacted by the velocity of money. He also explains how people can now use gold as an income producing asset. He also talks about his techniques to hedge for volatility and how he incorporates the fundamentals into his trading.

We discuss a chart that he shared with us about the relative value and how he is using it to spot changes in Gold and other precious metal trends. Finally, Ari explains to us how the central banks are currently trying to create some inflation in the economy.

This was all very interesting to learn, so pay attention and listen closely. Thank you for listening, hope you enjoy this episode.

Date: 8/11/16

Biggest Takeaways:

  1. How Gold is impacted by the velocity of money, and how to use it as an income producing asset.
  2. Describes his techniques to hedge for volatility and how he incorporates important fundamental economics.
  3. How he uses relative value to spot opportunities in commodity markets.
  4. He discusses the debt to GDP levels and why the central banks are trying to create inflation.

Answers to the 4 rapid fire questions at the end of the show:

  1. Favorite Book About Trading:
    – Charles Cottle. Options: Perception and Deception.
  2. Favorite Movie About Trading:
    – Floored
  3. Best Advice Ever Received About Trading:
    – This is a relationship business. It pays to cultivate your network.
  4. Advice to Give to Others About Trading:
    – “You either have an edge or you don’t.” – Claire

    • If you have an edge beat the heck out of it.

 

Quotes:

“Why do you have interest in Gold? It’s just a lump of metal?”

“The Fed says we want inflation”

“These Debt to GDP levels haven’t been seen since the 30’s”

Relevant chart pertaining to guest’s comments:

Pictured Below: Relative Value between Spot Gold Currency and Copper.

ari 2

Pictured Below: Relative Value between S&P and commodities.

ari1

Resources:

Twitter:  httpss://twitter.com/std_dev

Website:  httpss://www.tradingtechnologies.com/

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