Bloomberg proclaimed yesterday that according to trading genius Dennis Gartman the Gold Bull is Dead! Gartman is a momentum trader who up until last year has done fairly well over the many years he's been trading. This year his fund is down about 25%. It's hard to know exactly because as his fund became decimated he stopped printing the wretched figures. At the time he was down about 20 percent. Gold was at about 1800 and he was loading up. When gold dropped to 1650 he bailed out.
Meanwhile another trading legend: Richard Russel, who is a fundamental trader, though he also uses charts, has published 12 rules for survival in this environment. Here are rules 4-6.
I wholeheartedly agree with them:
4 — Have faith in your gold. As confidence in the whole monetary system slowly fades, the desire for gold will heighten.
5 — Remember, there’s often a large correction prior to the final speculative gold run.
6 — This time there may not be a “final gold rise,” because large
interests may just decide never to sell their gold. They’ll keep their
gold as a symbol of “eternal wealth” that can’t be destroyed of go
Look, gold may fall to 1400. So what? It's a trading blip for those holding bullion. DO NOT SELL YOUR BULLION. When gold hit 1000 it backed off to 650. Everyone said the gold bull is dead. Within a year it went back to 1400.
Now it backing from 1900 to maybe 1500.
But remember this: THESE ARE NOT FREE MARKETS. THESE ARE NOT MARKETS. THESE ARE MANAGED CASINOS DESIGNED TO STEAL YOUR TRADING MONEY.
And those managing the Casino (the banks) know this. As you panic and sell, they're there buying. So don't be a sucker. Don't trade. Buy bullion, and hold it.
Because over time PRIMARY TRENDS WILL OVERWHELM the CASINO. And over time the primary trend is paper down - real assets up.