Just immediately after I warned investors to be wary of gold speculation after it hit a record high above $1,910, the gold price crashed with the biggest three-day slump since October 2008, it fell to as low as $1,707 before it recovered. that is eye-dropping 10% down!

I had no crystal ball, neither was this a coincidence. The musical chair game of gold speculation, just like any other financial instruments, is always directed by professional institutional players. Whenever the music stops, those who are left out penniless are always the men on the street.

Gold biggest three-day slump since October 2008 (Source: Financial Times)

Just as Dennis Gartman wrote  in his Gartman Letter:

Gold is a trade, gold is a position, gold is volatile, but gold is not safe,

The public is involved in gold, and the cab drivers of the world have bought into it. Now they are being taken out, at high cost.

About the Author

Ivan Guan is the author of the popular book "FIRE Your Retirement". He is an independent financial adviser with more than a decade of knowledge and experience in providing financial advisory services to both individuals and businesses. He specializes in investment planning and portfolio management for early retirement. His blog provides practical financial tips, strategies and resources to help people achieve financial freedom. Follow his Telegram Channel to join the FIRE community.
The views and opinions expressed in this article are those of the author. This does not reflect the official position of any agency, organization, employer or company. Refer to full disclaimers here.

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