Friday, December 18, 2009

Gold Bottom Is In

I think we have seen the bottom in Gold for this short-term correction. I could be wrong, of course, but I put my money where my electronic pen is and bought GDXJ May 25 calls today at the AM lows. I am now 95% invested in my speculative account with only a smidge of dry powder for next week.

I also took this opportunity to buy some more Gold bullion through Bullion Vault last night. Since I don't want these recent purchases or my core physical Gold and Gold stock holdings to lose money, I am now quite biased.

Here is a current 1 month intraday 60 minute candlestick chart of the GLD ETF thru part of today's action:

And here is the correction in Gold back in December of 2005, again using the GLD ETF as a proxy to allow me to do intraday charting (can't do intraday charting with spot Gold price using

The only commentary I have about these two charts: close enough for me. Back in 2005, Gold went up almost 50% between the late December 2005 lows shown in the chart above and the May 2006 top (i.e. $490 to $730). I have no concerns about the US Dollar Index. I have no concerns about the stock market. I am focused on the strongest global bull market in the world - Gold. It is Gold's time and I intend to be along for the ride. I think Gold stocks are getting ready to explode higher across the board whether general stock markets hold up or not (I think not, but we'll see). provides you with the information to make the right decisions on your AU 5 Day investments

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