Any Gold Bugs Out There?

Election Day 2008! What better day to start a new blog about all things gold and silver related. This is the blog for you if you want to trade gold and protect your wealth.  If you are into a “socialist utopia”, you have stumbled onto the wrong blog.  I am going to call them like I see them.  On this blog, I am looking for gold bugs!

Everything changes and everything remains the same. Just a few thoughts on the markets and gold’s reaction to the same. As I write this, the Dow is up 300 points, NAS up 51, the S&P up 38 and gold is up 43.60 at $765.  It appears that gold is beginning to react to the extremely oversold position that it has recently found itself in.  I was not surprised  that gold corrected with the turmoil in the markets that began in July, but the severity of the latest downturn caught me completely by surprise.  It just goes to show that the old saying, a rising tide lifts all boats, is a two way street!  Gold is reacting to market events as a commodity.  Soon gold will separate itself from other commodities and react to events in its truest form, as real money, the absence of debt, the polar opposite of fiat currencies.

Market interventions, ETFs, shorts covering and just plain panic combined to drag gold down with the market.  Good stocks got thrown out with the bad in order to meet margin calls.

Some of my positions have until just recently been down as much as 45%.  That hurts because I did not follow my own rule of pulling profit off the table as they rose.  Neither a profit nor a loss occurs unless you pull the trigger!  On the bright side, I have not taken any losses and I have been averaging down on the gold stocks that I like.  This is a gift horse!  Don’t look it in the mouth.  Back up the truck and get all the quality gold stocks that you can while the door of opportunity is still open!

This opportunity could be around for a few months, a year, or a few days, but when it ends we will look back on this as the greatest buying opportunity in gold and gold stocks in the current gold bull market.  While everyone was panicking as they watched their 401 K’s implode, I was kicking myself for not taking profit when all my stocks were at their highs.  If I had not been blinded by my greed as my stocks went up, I would have sold 1/3rd of my positions into strength and would now have doubled my positions on their dime.  Water under the bridge, but not a lesson that I will easily forget.

The time is nearing when gold and gold stocks will take off and at that point it is going to be hard to try and get on board.  I for one will be looking to sell into strength and learn from this recent lesson.  Just when you think everything is going smoothly, the bottom is likely to fall out.  As long as you buy quality gold stocks, it will be hard to lose in the coming Gold Rush

All aboard the Gold Train!

Till next time, good luck and good trading,

Also Noteworthy:

• Buy Gold Now
• Gold & Silver: With A Dose Of Caution
• Where Is Gold Going?
• Gold Undervalued?
• Gold and Hedge Funds