Monday, August 22, 2011

Tolkien Gold

"All that is gold does not glitter,
Not all those who wander are lost;"

In his classic tale of travel and travails, J.R.R Tolkien teaches the reader many things, not the least of which is how to seek value amongst a seeming cornucopia of treasures.  While gold appears to be the safe haven in these hard times, perhaps it's not the treasure that will serve you best.  Hardworking companies like AAPL and CROX are building both cash and global brands which, while they won't outlive gold, they will appreciate over the coming years much more readily.  Are you ready to limit yourself with the yellow metal, or are you open to far better vehicles for the road?

Consider a contrarian investment such as out-of-the-money GLD Puts as the appreciation of gold accelerates.

[PUT (GLD) SPDR GOLD TR GOLD JAN 21 12 $140 (100 SHS)]


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