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Gold Drops Again – Approaches $1600 Mark

December 13, 2011

Gold Drops Again – Approaches $1600 Mark

gold price drops rises gold bug investor hard metal commodity coins rareJust when it looked like gold was going to breakout past $1800/ounce, it turns around dropping over $70/ounce in 2 days to settle at $1634/ounce.

Volatility is the name of the game right now both in stocks and gold worldwide. One day the news is good, the next, not so good.


Adding to Positions

I’m looking to add some more gold to my current holdings but like Jim Rogers, I’m waiting for a significant pull-back before placing the trade. Inflationary pressures continue to increase day by day, which would indicate gold is already at a near-term low. While I do believe a long term uptrend in gold will continue, I’m willing to miss out on buying now, for the chance to buy lower in the future.gold coins add holdings rare pcgs ngc certified eagle mint

I’m looking to buy somewhere in the $1500-$1600/ounce range and I think a lot of others are too. There is likely enough interest at $1500/ounce – which is about 25% off of gold’s recent highs in the low $1900’s, that any pull-back to that price range would likely be short lived before the price is bid back up again.

Cash in hand

cash in hand buys gold bars coins rare ngc pcgs eagle mint proof metalGold moves quick, so if you are looking to buy – pick your price point and get your cash ready. Just as gold only stayed briefly at the $1750+ level, it won’t stay long at $1500 should it get there.

The only question that remains unanswered is what kind of gold to buy? I’ll discuss some gold options in a future post – however, I will be staying away from any ETF (exchange traded fund) or any other “paper” version of gold. For me, only the real metal in my hand will do!

If I wanted worthless “paper” gold I’d just hold on to my cash!

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