Today’s advice: stop reading the financial pages and buy gold coins.

March 23, 2011 – Today’s advice: stop reading the financial pages and buy gold coins. Sure, the first part sounds simplistic and you know how I feel about the second. But reading the news these days, especially with a bunch of new economic reports coming out this week, is more apt to give you a headache than useful insight into what the market is going do next. The insiders have planned it that way.

A market run on fundamentals is reasonably predictable. Stock prices reflect the health of the issuing company and not leveraged dividends bolstered by Federal intervention. Prices rise and fall as companies succeed and fail on their own merits, and not on the whims of the managers of huge funds. Sound trading relies on simple logic, and not the convoluted reasoning of hedge fund managers or the instantaneous complex extrapolations of minutiae by huge computers.

"Non-professional investors … don’t get a fair shake … they have no capability whatsoever to understand the forces that are really driving the market," says Dan Genter, CIO of RNC Genter Capital Management in the Wall Street Journal. So they act like a school of small fish in the presence of marauding sharks, darting to and fro in a tightly packed school trying to anticipate their predators’ next move. But that makes it only easier for the sharks to devour them all.

If professional investors were forced to bear the consequences of their high-risk gambles it would not be so easy to lure in unsuspecting individuals. Instead, “the Feds’ current use of overwhelming force to block a market correction is creating overwhelming unforeseen and pernicious problems,” says Bill Bonner in the Daily Reckoning.

There is one sure way not to fall prey to market vagaries. Break free from the school and put your money out of reach of sharks and the government that protects them: buy gold coins.

Kevin Johnson

Senior Staff Writer – GoldCoin.net