I woke up this morning and put the kettle on for tea, then brought up the latest market action on my screens. It’s my morning ritual. The first chart I looked up was the price of gold. It was falling fast. I smiled.
Why?
Because I had a gold stock on my shopping list. A day like today is exactly what I mean by, “Buy on the next down day for gold.” I can’t tell you what the stock is, but I can tell you that I immediately sent instructions to my broker to bid just under market. I’m watching it now, waiting for the market to come to me.
On a micro level, this is what my friend Doug Casey meant when he said to make volatility your friend. The macro level applies the same principle to larger market movements and cycles.
But am I not worried that gold might drop through some “psychologically important” support level? No. The trend is in the other direction. If that happens, it will likely create some fantastic buying opportunities.
What if the trend breaks down? That’s another matter. I don’t expect that to happen, but I am looking at new speculations to help me diversify—get some eggs in other baskets.
Meanwhile, I’m a happy speculator. The price I had in mind for the stock I’m buying is within reach.
