Today, Gold exploded up, also silver. Gold miners had a nice up day also. Gary of the Smart Money tracker is convinced its time to buy.
I am real nervous. We are on the cusp of an announcement from Europe. If your of the belief the Germans will cave and finance the debt of Spain, Greece, Portugal, and Ireland, then buy Gold and miners on the open Wednesday.
If you think the Germans won't go for this, then a deflationary collapse is about to begin. In such a collapse, I have a hard time believing gold rockets up.
So I am splitting the baby. I am buying a little bit of GLD (gold) and SLV (silver) . Why? Because if the metals explode up, it will be very hard to buy. Each day you will look and say "that has to come back down". It may not. I'd rather have a toe hold to use as leverage to buy more as gains amass.
Conversely, if gold and silver are indicating a rise, but instead collapse trapping all of us in those sectors, I want to minimize losses by not taking huge positions.
I cannot day trade, i have no time. I don't like stop losses since as we saw today, metals can move huge swings in a day.
In addition, probably buy 100 shares of gdxj, the junior gold/silver miners.
Again a toe hold, and each day I wait for the market move of Europe indicating, inflationary or deflationary event in the year ahead. Also if the Fed announces yet another attempt to break the USD into a death spiral.
One thing is on the side of Gold and silver, no matter what happens fear tends to push up the precious metal sectors, and European fear can only help Gold Silver.