On March 16, 2012 my uncle went all-in on gold. For years he & my father have kind of served as a contra-indicator when it come to markets. And on March 17th I warned you:
As fate would have it, my uncle called me a couple of days ago, telling me that he heard something about March 21, 2012 — Something about the Federal Reserve “devaluing the US dollar 40% (on that day) along with the rest of the world’s currencies…” All on THAT day. And — he wants to put ALL of his portfolio into gold, like right now.
I’m not sure what radio/internet news/commentary/stock-newsletter/insider god was sharing this date, but my uncle believes…
There was no amount of ‘talking off the ledge’ on this one.
Here’s the deal — my uncle served our country in the Vietnam war (actually according to my dad, my family has fought in every single US war — except Iraq II & Afghanistan). My family & my uncle deserve my/our gratitude & respect. But they are also absolutely, certifiably, crazy at times.
…Although he rarely “trades”, he does make these “bet the farm” moves about once a year. And when he does, I’ve learned to note what he says because he’s usually in the ballpark of something, he just doesn’t know whether he’s coming or going. Personally, I usually do the opposite — more so with my dad’s moves.
So, last week I called him, “You’re down almost 5% and the world didn’t end on March 21st.” He agreed to sell. And, maybe gold will rally because I called him, instead of my uncle initiating the idea on his own. But guess what my uncle wants to do with the proceeds from the sale? For his next all-in bet, you’re gonna love this…
He. Wants. To. Buy. US Treasury bonds.
I almost wish I was making this up.
Fortunately, I think he’ll listen to reason on this one. But that being said, I’m certainly paying attention. My uncle wants to buy Treasury bonds…