For the second day in a row, gold prices are sinking under the weight of profit-taking. Is the selling frenzy feeding on itself, or will it simply net another buying opportunity?
Let's face it: if you don't own gold right now, you're probably wondering if it's too late to buy. If you do own gold, you're probably wondering whether it's time to sell.
Proclamations that gold may be in a bubble add fuel to the fire of uncertainty - no one wants to get caught in a bursting one. Even famed commodities investor Jim Rogers recently weighed in, stating that he believes gold prices will hit $2,000 an ounce but he's done buying it.
Not everyone is on board. Goldman Sachs thinks gold's top will come in at $1,750 an ounce in 2012, while Kitco.com predicts a top will be reached in 2011.
With varying opinions like that, it's tough to know which direction to move. If you want to play gold, you don't have to miss out. GLD, iShares COMEX Gold (NYSEArca: IAU) and ETFS Physical Swiss Gold Shares (NYSEArca: SGOL) are all well above their long-term trend lines.
By having a simple strategy like trend following, you can participate in the upside, while the sell point will give you protection from declines.
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