Gold Plunges - Do Not PANIC

The price of gold is falling by its largest amount in over two months today after Ben Bernanke did not hint of a new stimulus package.

The word on the street is that gold is falling by more than $75 per ounce due to no mention of QE3 in his semi-annual economic speech. Sure, that would be a factor for investors to take profits, but to hammer the yellow metal to this magnitude - no way!!

In the same speech Bernanke stated he will keep interest rates low into 2014. In my opinion that is a stimulus package dressed in a cheap suit. By keeping interest rates low it will continue to put pressure on the US Dollar and therefore be a positive for gold prices.

Today's sell-off will likely create a buying opportunity for long-term bulls on the price of gold. Support on $GLD can be found the the $164 to $166 range. The ETF is currently at $166.30. The selling may extend out a day or two, but as long as the support range is not breached, look for $GLD to bounce back.

Hot ETFs to Watch Today

iShares Silver ETF ($SLV) - Taking advantage of a weak US Dollar and more money flowing into the precious metals, $SLV is back to the best level since September. Even though the ETF is up 36% from the December low, it is well off the high set last April.

EG Shares Emerging Markets Consumer ETF ($ECON) - On pace to close at its best level since it began trading during the third quarter of 2010. Since 9/15/10 the ETF is up 21% versus a gain of only 2% for the iShares Emerging Market ETF ($EEM). I prefer $ECON over $EEM any day!!

Global X Social Media ETF ($SOCL) - Up over 3% today as several of its holdings ($RENN, $GPRN, and $ZNGA) are having solid days. I am still skeptical of the ETF, but the momentum may continue to push it higher.

* My firm owns shares of SLV and ECON.