Great trade so far is my short Gold! 4 more weeks of short Gold.
Excerpt from my newsletter of October 1st.
" This status quo has allowed the United States to balloon their deficits and credit into the stratosphere without any checks or balances. It is the innate privileged luxury of a Country which represents the Reserve Currency. We all require the World’s Reserve currency to exist or we will not have any form of measurement to discover actual value! And here lies the problem. As a crisis approaches it is now a natural instinct for anyone who manages money to buy and hold US Dollars and sell everything else. The rational thought behind the maneuver is quite obvious. If the system experiences stress or possible failure then all other things measured by US Dollars will collapse first leaving the actual US Dollar itself to fail last, like a game of dominos. It is that simple. Gold does not even have its own value besides being measured in US dollars. Everyone knows this but you have to take a step back to understand what it really means."
" Ironically the crisis that has now appeared is the questionable integrity of the US Dollar itself! A $16.9 Trillion debt, a Government shut down and a complete inability to govern the Country of the Global Reserve Currency. However the capitalist play is still the same. Gold, oil, copper, wheat, soybeans, and milk amongst everything else that has real value and substance is sold, and US dollars, US stocks and US bonds are bought against a common sense understanding that the products one is buying are the actual underlying assets of a currency that is unsustainable! The horse-into-the-burning-barn trade! You have to love capital markets. They literally are the opposite of the human condition and common sense for that matter."
This is a very easy trade right now as well. BUT REMEMBER this is not an investment this is a trade. I will be long Gold in 30-60 days for the eventual rise over $2000 by 2015. For now though until things are resolved Gold will head lower into a financial crisis.
Once they are resolved that is when you would want to buy Gold when everyone starts selling off their US Dollars and buying hard assets! That will be a mega commodities cycle!