As dismayed as some of us longs are today, we all could see a temporary drop coming. It could have been yesterday, today, two weeks from now. At the end it does not matter. Gold will continue its march forward. It may take a week or so of consolidation, but it will be back in full force before you know it. I am long multiple calls on GLD extending to June of next year. I have seen huge percentage gains on them over the past week. Did I sell today - Hell NO!!!. What I did was buy more calls close to the current levels for October expiration as well as calls on the double inverse ETF GLL for the same time frame. If gold pulls back significantly, the money I make on the GLL calls will cover almost my entire investment in my long positions. If gold continues to march forward to new highs in the next few weeks, I lose the value of the GLL calls(a small price to pay). Thanks for the volatility.
Only in the sense that it has double the impact if gold falls (Double inverse of golds movement). The same could be done with puts, but you would have to invest twice the amount to have the same impact.