MM66 - Gold Rush

Today I want to talk about gold some more. I am not a financial advisor and I am not a CPA, but I do like gold quite a bit, and I want to share some charts with you and walk through exactly what I am looking at and why.

Here is where I am coming from. I have a lot of AI in my portfolio. I have a lot of Bitcoin exposure through IBIT and MicroStrategy, and I own Solana. Having said all of that, up until now I had entered gold in 2024. I had not been adding, because we had this huge blow off top and then all this consolidation grinding down. Then a couple of weeks ago I told you about my first trade back into the gold market with GDX, which I walked through in MM59.

So why gold at all, when I already own hard assets like Bitcoin? For me personally, especially being 50, the metals are an important part of my portfolio. I cannot have all my money in AI, and I am not going to have all my money in Bitcoin, even though I understand that Bitcoin theoretically should do the very same thing that gold does, protect my wealth as a hard asset. I am choosing the diversification for myself. That is a personal choice, not a recommendation.

Now let me show you the chart, because this is where it gets interesting. Take the all time high on gold and draw your trend line down from it. Look at what just happened on the daily. We broke through that downward trend line from January, and we closed above the 50 EMA. Every newer trader watching this would say the same thing: oh, it broke out, it is time to buy today. And this is exactly where I want to stop you.