Gold and what I’m buying
Gold is well on its way to $ $1300 an ounce. It may take some backing and filling, but demand is strong and steady even at these prices. See my article on September 2 which talked about the divergence between gold and regular stocks. Right now, the equities rally and gold and running in tandem. If you had taken my advice back then, GLD, the gold ETF was trading that day at $96.19. Its been on a steady climb and claims the $102 mark as of todays close. GDX the gold mining ETF if you purchased on September 2 when I mentioned it was $42 and change and is up now at 48 and change for a nifty 14%!!! Its still not too late to buy in before the big rush. There will be some pullbacks here but if gold keeps it head above the psychological $1000 level, its good as gold!
Of note also is that hte Dow also hit the psychological 10,000 level and has stayed a few days. I still have DB, the agriculture ETF, CGA (China Green Agric.) and some gold and silver stocks which are all handily outpaciong the market (GORO.OB and SSRI). As soon as Dow hit 10,000, I bought QID (double short the Nasdaq) ETF which goes up/down twice as much as the Nasdaq, roughly speaking as a hedge. If we are at a turning point, I will sell out my longs and keep the hedge on until it stops working. Right now it isnt! but thats what its there for, its insurance! so it doesnt always have to work out…
