Why I’m Short Gold (GLD), Despite the Chaos Around Us

Gold! Gold! Gold! Gold! Gold!

How many times over the past few months have we heard so-called financial market experts tell investors and speculators to buy gold? A lot of times! 

But many of these so-called experts I would argue are not experts and the reason I say that is I’ve checked their financial market performance history and their forecasting history and the vast majority of these so-called experts have horrible performance records. 

So you should not be listening to these people. Now, it’s true that gold prices do tend to rise pretty sharply during very tumultuous types of environments, and gold prices did rise sharply from late March of this year through the first week of August, up about 40 percent, to be specific.

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And the reason being a lot of people were so afraid of this coronavirus they bought gold and for some reason thinking it was going to protect the value of their assets. 

Well, gold’s not going to protect the value of one’s assets. That’s really a foolish argument, that’s really been disproven. We don’t have time to talk about that here.

But one thing I do know with absolute certainty is there’s only one good time or sensible time and reason to put a fair amount of money into gold, and that’s during very inflationary environments. When inflation rates rise sharply, well, the purchasing power of the dollar or any given world currency is going to decline.

When the prices of any goods and services rise a lot, then you can’t buy as many goods and services. And, therefore, gold tends to hold its value in those inflationary environments.

But we’re not in an inflationary environment! Just the opposite. We’re in a deflationary environment. And there’s no way inflation rates are going to rise sharply for, I don’t know, at least another year and a half — if even then.

So I’ve been advising our subscribers, subscribers to the Bulletproof Wealth Report to do just the opposite than what these so-called experts are telling them, and that is to sell short gold via the SPDR Gold Trust (GLD).

We’re already into positive territory with that short recommendation, and I expect gold prices in general to fall about by about 12 to 13 percent over the next few months and by up to around 40 percent by June of next year.

So if anything I would advise those of you that are financial market speculators to sell short gold by the symbol GLD.

If you’d like to learn more about my thinking and the reasons for making that recommendation give us a try you can try us out, the Bulletproof Wealth Report for the first month at absolutely no charge, by clicking on the link at the bottom of this video. 

Thank you for listening and I’ll speak with you again soon.

Get step-by-step trading advice and more gains in your portfolio from David Frazier in this Bulletproof Wealth Report special offer.

 

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