Thu 12/15/11 10:00 AM – Gold Drops 15%

Gold is now off 15% from its recent highs. As you know, I have an automatic sell rule when a security drops 15% so we will be selling gold.

However, I like gold for the long term and see buying it back again at lower levels. It can go another 10-15% lower as people raise cash. Individual investors have also been selling stock but I think the selling of gold is primarily institutional in order for hedge funds to meet margin calls.

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