Wednesday, November 4, 2009

GLD (GOLD) Stock & Monday's Missive

I wasn't going to post this but I was seriously thinking of putting the remainder of my 401k plan into the GLD stock on Monday before it skyrocketed the past three days. Had I done so theoretically I would have made thousands of dollars in a matter of three days.

I was in GLD for a while after I recovered from losses in which I had invested right before its historical plunge by $10 per share. I waited months to recover, made an extra $5,000 but was so shaken by the volatility of the stock, I decided to play it conservatively. There were claims the GLD fund didn't have the real gold to back up their fiat paper stock.

Then the past few days I was thinking what the hell, the dollar's going to eventually crash anyway, why not make some money and take it out next year so I don't incur a huge tax liability? So, I was planning on getting into GLD again but got sidetracked from it on Sunday. I was going to do an on-line transfer investment after checking for Monday morning stats. Then I got too busy and forgot about it. Memories lingered of getting burned before which may have contributed to holding back.

The past few days I noted with disgust GLD went up $7 per share! Then again, I've seen it drop $4.00 per share in one day. Just because it goes up in a few days doesn't mean it won't potentially come right back down within the next few weeks. No stock goes up and up for long.

The stock market is a gamble for sure. Gamble at your own risk.