Okay, I know there are a lot of “Gold Bugs” out there they say you should always have some gold in your portfolio. Fair enough, but it’s the “some” that I would debate. Gold closed at a record high today, pushed higher by almost $19 per ounce to $1,568 by the continued uncertainty surrounding the debt crisis in Europe. To me, everything bad that could possibly happen that would push gold up has already happened, short of World War III. Yes one of these European countries could default (they are already in structural default anyway), yes inflation could get out of control (gold is already trading as if it is out of control)… we can go through the list of possible catastrophes, but the reality is that gold has already priced-in the worst case scenario.
Some think gold could go to $2,000 per ounce. Yes, it could. But you have to think – what else is going to happen that is so terrible that gold will advance another 30%+? I just don’t see it. My call, right now, right here, today, is to sell gold.