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Today it is interesting to see the following:

  • Gold price went up a whopping $20 in just 15 mins (decoupling from USD).
  • US dollar index goes up (as a proxy, used as a media for commodities trading and will be dumped afterwards).
  • DBC goes up (Commodities ETF and commodities will be the new safe heaven).
  • TLT (20+ years treasury bond) goes down. (no more a safe heaven?)
  • Main market goes down (in correcting cycle, coupling with USD).

The picture today tells us that people are moving money into hard assets impulsively.  We also have the news India central bank buying 200 tons of gold from IMF.  China might want to increase their reserve for gold as well.  Central banks are swapping from paper to physical gold.  What does that imply?
My strategy is to take advantage of the main market correction and accumulate gold and silver stocks from here.  I expect to see more correction from the main market, however if gold and silver price goes to the moon, these strong fishes (gold/silver stocks) could swim fast against the current.  Once gold and silver become more and more decoupled from US dollar, gold and silver stocks will fly to Mars if price of gold and silver shoot up to the moon.
The following is a list of gold/silver stocks I accumulates:  BVN, NXG, CGLD.OB, AUY, AU,GFI, HL, CDE, SLW