Rebounding Gold?

Totally inadvertently TrashStock called the timing for gold's correction.  As of Wednesday night, though, Trashstock thought that the correction had been overdone, and sold his GLD Jan 12 130 & 140 puts Thursday morning, and traded them for a calendar spread consisting of GLD calls, Oct 11 170's and Jan 12 170's, in anticipation of something of a reactionary rally, coupled with hesitation about Bernanke's Jackson Hole, Wyoming talk.  Who knew (TS didn't factor this tidbit in) that GDP would be reported down this morning, which has added a boost to yesterday's rebound.

Incidentally, TrashStock has been using Kitco.com's site for tracking the spot gold prices - very useful. Also, this recent foray into the commodity to outlast all commodities has taught TrashStock that in a game with heightened volatility, positions closer to the money are probably more likely to produce results than those further afield.  The Jan 12 130's barely budged, though the 140's did return about 90%.

..TS.

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)]

..TS.