First I hope everyone read my partners guest blog post on Friday on Gold, ($GLD) it was an excellent synopsis of the Gold Markets
Please read it again if you are holding gold, or looking to buy or sell Gold, it was posted last Friday right here on our blog.
Also my partner wrote a really detailed analysis of Gold in his famous Big Picture Piece, which again is a must read if you have any Gold or are holding any Gold or are looking to buy Gold, you can read his piece at http://hosted.verticalresponse.com/1472721/847a156394/577297197/c55b8ccf12/
As I have told you before I monitor the positions of all the major Billionaire Investors and Hedge Funds, and as I mentioned on this blog before back in February that the majority of these Billionaires were liquidating their positions in Gold, and in the Gold ETF ($GLD.)
Even the great George Soros, who is a huge Gold Bug, liquidated most of his Gold Positions late last year and in early January of 2013.
I personally have never been a fan of Gold, Gold does not pay a dividend and Gold over the last 50 years has averaged less than 2% annualized or less than a bank savings account.
But the important thing about this massive sell off in Gold is that everyone should have known this was coming, because the smart money, the billionaires tipped their hands by selling their Gold Positions early this year.. They were selling Gold, yet everyone was listening to the rhetoric about Gold being a safe haven currency, blah blah.. well now Gold has collapsed and people are sitting on huge losses. Not only realized and paper losses, but also opportunity cost losses and that is even more important.
So most Financial Planners, Stock Brokers and Investment Advisers had their clients in Gold, because lets be honest they all are sheep and they all practice group think, so all their clients have not only lost actual money on Gold this year, but they also did not have their money invested in stocks where they should have been invested, and that is the so called opportunity cost. Basically people who owned Gold this year are not only down 14% in their Gold ETF, but they are really down 25%, because they would have had their money in stocks and the stock market has increased by more than 11% this year alone.
So again if you own Gold or are thinking about buying Gold please read my partners blog post and Big Picture Piece on Gold, it could literally save your retirement.
Here is the link to his piece on Gold http://hosted.verticalresponse.com/1472721/847a156394/577297197/c55b8ccf12/
Editor of the Billionaires Portfolio