Have flipped to the bear side. Long GDX puts and DUST stock. Gold stocks fall in stock market crashes, no matter what the metal does. Gold stocks are STOCKS. They will be sold. It happened in 1987 and all previous stock plunges.
In 1987, gold & gold stocks went up into the Oct. 19th crash, but afterwards both fell sharply, especially gold stocks. They caught up to te 40% decline in stocks in a hurry. Some gold stocks fell 90%. Important to rememver that gold stocks are stocks, and they usually fall in bear markets, no matter what the metal does. Take profits in NUGT, hold gold. If you are speculative, buy DUST (3X inverse gold stock).
3 times volatility of gold stocks. What goes up....
I bought NUGT below $25 about 6 months ago. Just sold yesterday. May get back in $50 lower.
I am still holding my gold & silver coins, but completely out of stocks.
Same thing as in 1930s, when gold almost doubled. Race to the bottom for fiat currencies to see who can beggar thy neighbor best.
Gold stocks are stocks, and usually decline in market corrections & crashes. Right after the 1987 crash, for example, gold stocks fell 50% in a hurry, reversing the prior rally. Hold gold, sell gold stocks. DUST is the leveraged way to play this reversal, if it happens.
95% bullish consensus in gold & gold stocks is a contrary indicator. Everyone who wants to buy has done so. Few potential buyers left.
Dollar is not safe. Just another fiat currency.
Bill Gross says the bond market is "the most overvalued I've ever seen" and also "dangerous". Bill Gross is my hero.
"Czechout" has a ring to it. Europeans will no longer tolerate rule by a distant unelected Eurocracy, and be ordered to accept a massive flow of refugees and bail out freeloaders.
Gold stocks & gold made highs going into the Oct. 19th 508 point (23%) crash in the market. After the crash, gold stocks plunged as much or more than the overall market. XAU was down more than the market a couple of moths later. It seems that in market plunges, people sell their winners to raise cash for margin calls.
Lesson: NUGT, GDX & individual gold stocks should be a source of funds. Don't sell all (unless the market crashes), but sell some if you have profits. 25-50% of positions perhaps.
But no matter what happens to the market, keep some gold & silver metal as insurance. At least 10% of net worth. The metal will do better than the stocks in a crash.
Hopefully triple ETFs won't be banned by then. You could possibly lose everything on both sides.