Into gold

I just reinvested 25% of my silver profits into Gold bullion, a  no-brainer for me really.  I have a lot of dollars in a trading account  so it's a nice hedge for that, I am not convinced of the view that there  will be hyperinflation at some point, nor that gold will ever be part  of a monetary unit.  However, I realise I could easily be wrong and want  to hedge against that.  If there is one thing you can count on, it's  for politicians to repeatedly make bad decisions.  I am quite sure that  if gold were to be considered as part of a monetary unit, it will be the  very last option available on the table, and by that time things could  be a real mess.  I've done very well indeed with silver, but it's far  less well rounded as a hedge than gold is.

I may put another 25%  of profits in over the next few days.  I'm keeping the rest since if the  precious metals story turns out to be complete bolshoi longer term, I  still have the gains to show for it.


I'm a fan of Moses Kim  from expectedreturnsblog.com, he seems quite shrewd and reckons there's  more to come on the downside.  His latest post;


Gold's Collapse Continues

"As  I write this, gold is trading at  $1591 in the overnight markets, after  trading as low as $1531.  Surprised? You shouldn't be. Gold was  overstretched and needed a  breather. I am actually starting to think we  will see gold in the $1400  range.

Gold has monster  corrections  all the time, yet people are surprised when they come.  Every time gold  rallies, gold bugs say the world is ending and  hyperinflation is  imminent. This doesn't make sense to me. Treasuries  are hitting high  after high, which means the interest payments on our  debt are holding  stable, and somehow gold is supposed to skyrocket?  Let's be objective  here.

True believers in gold should  take a  one month vacation and not even look at the price of gold. When  your  vacation is over, buy gold at whatever price it's trading at.  I  honestly believe this is a better strategy for most people than  the  alternative, which is to constantly monitor gold prices and buy and  sell  in an emotional frenzy. Let gold bounce off the 200-day moving  average,  then let's start talking about a rally."



As an aside William Patalon III, Executive Editor, Money Morning posted a story on 20th September, the headline -

Why We Know Gold Prices Are Headed Higher

You gotta love it, gold now $200 lower.  I'll be paying close attention to this guy in the future!



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As regards futures trading, I still haven't received my copy of Windows 7 that I ordered that I need so I can run the PC software provided by my broker.  I ordered it from Amazon, delivery date states between 22nd September and 4th October...

I can't complain since it's still within the "delivery window", I'll just need to be patient.