Gold Equities down, gold up

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We've been talking about this a long time and it's finally coming to pass;

The insane stock market is starting to finally crack for real .

This report comes from yesterday February 13 BEFORE gold blew through the 200 day moving average.

Why is this happening?

It's pretty simple...

Traders (people who always have to be playing) are getting out of the US stock market and they feel they have to put their cash somewhere. A phone call can't buy real estate (and that market is a disaster anyway), but a phone call buy gold.

We bought some gold Monday for the first time in a very, very long time, not as a speculation, but because we sensed a price rise coming and we wanted a bigger percentage of our portfolio in the yellow metal in case the collapse of the stock market turns into a broad based financial panic and a major gold run.

As it is, at the rate gold has moved in the last two days, we may be looking at bear panic in the making.

That said, a gold price wipe out eventually is not out of the question when the inevitable liquidity/solvency crisis hits full force and everyone will be selling everything into a market that is devoid of buyers.

As always, we are not offering or selling advice, just sharing our outlook.

While we're at it, if you're inclined to add gold, DO NOT buy collector gold coins or gold from high pressure, highly advertised boiler room operations.

Also, we take physical delivery of our purchases. We never buy paper or even electronic promises that someone is holding the gold safely for us. That defeats the entire purpose of gold a a financial system collapse insurance policy which is how we use it. (Again, we're not trying to make money with gold. We're trying to protect wealth.)

If you don't have money to buy gold, food and other critical supplies are always a good thing to put money into. The worst that will happen is you'll never need then and you'll use them in the course of daily living which is not a bad outcome at all.

NEVER borrow money to buy gold and unless you're s super pro who can watch markets all day long, don't leverage your position.

Silver...Not a metal for the faint-hearted (or prudent). I stay away.

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Equities down, gold up

The money's got to go somewhere

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Jim Wyckoff of Kitco