Turning then to gold and the precious metals, we have
been out of the gold market for a couple of weeks, having
idiotically tried to sell gold short on our last entry. That
trade proved to be a complete an utter mistake, making
us look more than merely unwise; it made us look foolish.
That was not the first time we've made a foolish,
rule-breaking trading decision, and in all likelihood it shall
not be our last, for we are but human; we are not
machines; we are not Spock. At this point, however, it
seems rather clear to us that the trend of the dollar is
down; that the trend of the commodity market is up, and
that the proper course of action is to once again be long
of gold... and so we shall be. It's good to be home again..
NEW RECOMMENDATION:
As noted above, as we are
liquidating positions in equities, we wish to return to our long position in
gold, buying two units upon receipt of this commentary. We have, in the
past, focused our attention upon GLD, and we shall do so again, but we
are more and more inclined... or at least shall not argue with those who
are strongly inclined to do the same... to own gold mining shares.
Owning Barrick, or Newmont, or Agnico-Eagle, or the Central Fund of
Canada seems reasonable to us for the first time in quite some while.
