Everyone Loves Gold
The adage of a successful investor is if everyone is in love with a stock or an idea… then one might want to take a contrary look. In today’s uncertain times, people are flocking to Gold. There are back logs in purchasing gold coins. Ed McMann hosted a commercial on the superbowl regarding gold. Are those who who declare that Gold is their most favored investment this year ahead of investment-grade bonds and other assets Correct?
Who is blame gold bugs since more than $28 trillion has disappeared from the value of global equities in the past year, as well as credit losses and writedowns have reached $1.1 trillion.
Everyone is seeking safety and stability. The question truly is how safe is gold. It fell approx 5% this week from the high of $1007.00. Why can’t gold go down to $500 again. I have learned with all my years of trading anything can happen and one needs a plan. What will you do if you buy gold now…and it goes down…and stays down. I know there will be many that argue this can not happen. For those of you that believe this can not happen. I would suggest reading the book “The Black Swan”, by Nissim Taleb.
Really anything can happen… as much as gold can go up to $3000.00 it can fall to $300.00. Have a plan!