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Sell the rip, buy the dip – gold ETF (GLD)

In my portfolio I wish to have some exposure to gold (GLD). I read several articles in the past about buying gold and reasons behind it and when you are watching what the US government is doing to our currency, you definitely get an itching for gold. Bernanke’s moves and the entire FED devastating policy of devaluing dollar’s value are catastrophic in the future for common people. There are a few ways how you can protect yourself against it and gold is one of the ways.

Just a few years ago, gold was selling at 400 per oz and last year it was at 1900 oz. With the inflation, Bernanke is “preparing” for all of us, gold will skyrocket in the future. It will have its peaks and valleys in price during its journey up, but generally it will be going up.

And it is those valleys I would like to pick up. As the saying goes, buy the dips, sell the rips I am going to buy more shares of gold via GLD ETF.

The recent rally in GLD was impressive and GLD is now correcting that rally. I am expecting GLD going lower in price. The reason for it is that the market (SPY) will most likely show a short term rally on its way down which would push GLD lower. As the market turns back down and continue going down, gold will most likely go up.

For that I will start buying GLD shares if and when the GLD drops below $163 per share.

Happy Trading

1 response to “Sell the rip, buy the dip – gold ETF (GLD)”

  1. Good blog you have here.. It’s difficult to find quality writing like yours these days. I truly appreciate people like you! Take care!!

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