I Hate Gold

Posted on Mar 4 2016 - 11:57am by Dan

I hate buying Gold.

In 2009, we saw an influx of young people denouncing traders with decades of experience, proclaiming that Gold would rally to $25,000.00 an ounce.  Why?  Because they watched a YouTube video of Peter Schiff and Ron Paul.  And suddenly, they were experts on all things economic.

So yes, I have an emotional bias.  I am not above such biases.  I have an emotional bias against Gold.

I hate buying Gold.

Not two months before we saw the crushing implosion in precious metal prices in 2011, I actively warned individuals against believing idiotic stories of a Comex default, or “JP Morgan” shorting Silver stupidity (obviously these geniuses had never read up on broker dealers, nor had they read up on pairs trades and spreading) fed to them by dealers who were fueling that gigantic pump and dump.

I sold all of my precious metal holdings not a few months later; as I was called a liar, the biggest idiot in the world, and every other name in the book by people who grinned like idiots in the face of the oncoming train.

I hate buying Gold.

But as I said the other day?

I understand when it is time to get out of my own way.

One of my processes said to be long Gold a few days back, so I got long Gold a few days back

As we have said many times …

All you need to profitably trade the markets, is a process.  It should be simple.  With that process, there must be some sort of risk overlay.  It will either be built into the very nature of the strategy, or the risk overlay may include things like a stop-loss order, with some sort of trade management rules.  And then, you need to be willing to grind out that strategy over a period of time …

My process said to get long Gold.  I got long the GLD.  

The “I think“‘s and “I don’t like” and “But maybe“‘s, do not mean jack squat in the face of my process …

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