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Gold is volatile (no kidding)

Report from two months ago

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Peter Hug from

Why am I running this two months after the fact?

Because the extreme volatility of gold has been a known factor for at least two months - and this is likely to continue.

The "why" stories will be ever-changing: the panic and greed will continue in its current exaggerated form.

I don't generally trade gold - unless I have the time and motivation to sit glued to a screen - but I do like to own it.

Why do I like to be an owner?

Because when you buy gold once (and pay ongoing storage and insurance), you own it for life (if you're storing is wisely, not in a pool or some other nonsense.)

Gold can't go broke, it can't get downgraded, it can't be re-structured and there is always a ready market for it. (It's also somewhat portable.)

Yes, gold's price can fluctuate and fluctuate wildly, but that's nothing compared to what can happen to stocks (go to pennies or zero and never recover), bonds (ditto), bank deposits in Cypress, or futures accounts with Jon Corzine. (More of that to come for sure.)

Compared to real estate gold is portable (try moving $1 million in property) and there are always spot buyers in every place on earth for it.

Gold is an insurance premium paid once against this: "What if this total, shady house of cards collapses faster than I can re-allocate my assets." Set it and forget it with a percentage you're comfortable with.

(This simple act has saved the financial skin of people all over the world, Argentina and Russia just to name a few examples. Don't be a hubristic American and think it can never happen to you.)

That said right now (2/7/15), I'm waiting for lower prices to double down on my core position. How low? I don't know yet. Hopefully, I recognize them when I see them. is a good source of info on the precious metal markets, especially gold and silver. Elliott Wave analysis is a good tool for catching big trends.