Maybe all the goldbugs are selling their gold to buy BitCoins! Just kidding.
But what I’m obviously not kidding about is that gold has crashed today.
A few weeks ago, I started trying to find a reputable local physical gold dealer (and no, I didn’t need a prescription, ha!) so that I could start slowly but surely buying some more gold coins and bullion. As I explained at the time, I didn’t care if gold was bottoming at that particular moment or not, because I want to scale into quite a bit more gold coin/bullion over the next couple months and continue to do so on weakness in future years.
I’ve explained to my subscribers why I don’t want to invest in paper gold, like ETFs or other places that give you a receipt and promise to hold your gold in a safe place for you.
You still shouldn’t. But I do think this crash is even a good time to start scaling into some short-term gold exposure. Don’t draw a line in the sand, but I do think at some point in the next few weeks, you’ll likely see at least a big short-term counter-trend pop in gold.
And finally, here are some very insightful and must-read columns for every investor and trader today on this wild gold crash happening in front of our faces right now live.
The Currency Wars – I promised earlier this week to start writing more about the escalating global Currency Wars and this action in gold today is part of why it’s so important to study and learn about currencies and how the war will impact your portfolio. Make sure to check out our ever-improving and incredibly helpful currency wars page.
Indicator Update: A Critical Season for Earnings – Jeff Miller’s Felix system is still just on fire and I can’t wait to see what he says about this gold crash in his column tomorrow. Here’s his preview of the week and it’s got currency and precious metal info you need.
Shock and Awe in the Currency Wars – Silver Shenanigans – Jesse thinks (and I wholly agree) that there is some market manipulation taking place driving the price of gold down in a crash like this. Take the other side of a manipulated market.
QE ALCHEMY BY MAD SCIENTIST BERNANKE WILL NOT SAVE THE MARKETS – But it will contribute to the ongoing, escalating Currency Wars.
Gold, Stocks in Sharp Selloff Amid Global Growth Worries -I’m short the SPY and I’ve got VIX calls, as my blog readers know, both of which I had been scaling into recently while the markets were hitting these new all-time highs. I’m sticking with both, in large part as hedges to the broader portfolio.
Trade Alert: Gold is Dead; Long Live Gold – More on my trades today in gold.