Black Swan Insights

Well the cartel was back today to hammer gold and force it below trend line support. This will likely force the momentum and technical funds out of the gold market. Why is gold down today? It is not entirely clear--EUR/USD is relatively flat along with the stock market. The only explanation is that fears of a Euro collapse are dissipating with the release of the (bogus) bank stress tests. A large reason for the run-up in gold was because Europeans (particularly Germans) feared a dissolution of the EU and were buying gold to protect themselves. It seems the bank stress tests results along with the bailout package for Greece have temporarily eased concerns (long term is a different story). Other explanations suggest gold options expiration is to blame for the decline. But all is not lost, the long-term trend is still up as long as gold stays above $780. I am happy gold is declining in the short-term. It is always interesting to watch people get depressed when gold goes down when they should rejoice as they can now purchase gold at a lower price. Yet people never think of it that way. If you are interested in accumulating gold this is a good thing for you. Personally, I am looking for gold to fall to around $1050 before I buy any more. My goal is to have around 25% of my portfolio in gold bullion (right now I only have 5%). If the Fed keeps printing money that may eventually rise to 100%.

Black Swan Insights

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Words of Wisdom from Leonardo da Vinci

1. I have been impressed with the urgency of doing. Knowing is not enough; we must apply. Being willing is not enough; we must do.

2.Simplicity is the ultimate sophistication.

3.Life well spent is long.

4.Life is pretty simple: You do some stuff. Most fails. Some works. You do more of what works. If it works big, others quickly copy it. Then you do something else. The trick is the doing something else.

5. Marriage is like putting your hand into a bag of snakes in the hope of pulling out an eel.

Black Swan Insights

Weekend Reads and Audio

Gold Breaks Trendline Support