Gone with the Wind. Frank might be gold positive, but keep in mind that he's not very invested in gold now. As of last week he recommended a portfolio that would carry a weighting of 20% gold holdings and of those, he was only half invested at the time, of which 10% of that was in physical. Then, on Monday morning he recommended selling all gold producers.

This wold have brought his over-all portfolio down to having less than 10% in gold and the rest presumably in cash.

I recently wrote him and asked if he considered the over-all portfolio to include one's house. He said NO. He meant equity investments only.

So be clear, while he is a gold technician, he is clearly not a gold bug and his feeling is obviously not particularly confident in gold for the near term. He feels that if the market crashes, gold stocks could get taken down with it. So he's only holding CEF and physical gold now and not that much of either. He was very clear that this is a time to wait for more clear direction from the markets.

I found his column very scary and it leaves me wondering what I should do. Follow him to the letter or take more risk than he advises. He's been wrong before, such as last year around this time, calling for a drop in gold, when it ran way up. However, had I followed his advice to a letter last year, I'd be way further ahead in the long run. He's being cautious and playing safe, with capital preservation the main consideration, while waiting for opportunity.