Gold: The Joke(Rally) Is Over
The ridiculous gold rally died when it became clear the world isn't ending. Since my post last night, the Swiss pound (my inflation recommendation) dropped 1%, gold dropped 7%. Gold bugs root for economic armegeddon but once again, their dark visions remained unfulfilled. As is always the case, gold gets you beheaded when it turns downwards. As there was no basis other than fearmongering for the gold rally, it plunged, of course, hard and fast. Gold, along with bonds, should continue to fall for the next week as stocks come off oversold. I own GLD puts and intend to sell at $780-$790 gold. We are in a deflationary depression... otherwise known as a disasterous time to own shiny metals. Even gold stocks were mixed to down in spite of naked short selling ban... garbage like Emcore and Sulphco were jumping 25% cause shorts had to cover, but the supposedly naked shorted miners dropped. Bwahaha. GMX will suggest when to go long metals... today isn't the day.