GOLDBUGS AMEX Goldbugs Index (GOLD)

[4Godnwv]

You bring up an interesting point. When the market (or any stock) is being bought, I always ask "who is selling?" Over the last week or so, when the market was selling off, I keep wondering "Who are they selling to?"

Every trade has both a buyer and a seller (well.. that's another subject, lol) - I always ask when buying a stock, "why would someone sell me this stock?" And vice versa.

Obviously both traders think they are getting a good deal, but one of them isn't.

Two things are certain. #1 If you trade much, you are going to make a bad deal. And you can lose 100% of your investment. (I've done it more than once playing pinks)

#2 Gold will NEVER go to zero. i.e if nothing else, it is a hedge against your other investments. For this reason alone, everyone should own some PM's. Here I am talking about physical, not stocks. Stocks can go to zero.
History shows that the chances of the US government printing more dollars is pretty good (I'd say close to 100% haha) - History also shows that gold, despite manipulations, gains in value as dollars are created.

History also teaches us that the dollars you have in your hand today will buy more gold than they will if you wait 5 years, 10 years, 50 years, etc. etc.

Gold is one of the few investment opportunities in life where even a bad trade will eventually yield a profit.

This because of a second point you make. There is a "limited supply of gold". When compared to the ability to print an unlimited amount of dollars the choice becomes clear.

Exchange dollars for gold at every opportunity.