Before the current “crisis” I had been slowly moving out of the USD and into gold and more stable currencies, figuring the public wouldn’t catch on to the situation for another 5 or so years. Boy was I wrong. The question now is, what is the proper response? As I see it, there are two options:
SIt on the USD, maybe even carefully buy stocks at the lows, and wait for the price of gold to fall.
Buy gold now and get out of the dollar in anticipation of a crash.
The second approach has a certain logic to it. However, last night I saw Jim Cramer saying to buy gold. My general rule is always do the opposite of what Cramer says, so this is a bit of a pickle. More specifically, what if Congress turns down the bailout deal? Won’t that make the price of gold fly downwards as investors say “oh, we panicked over nothing” and then we can move in and buy it? On the other hand, they could actually do it and destroy the reserve currency.
My real question is, just do we respond to the public all of a sudden behaving like Austrians? Do we out-Austrian them, or figure their attention span will soon run out and invest contrary to them?