Once again, gold has surged to a record high as the U.S. dollar weakens. As the prices climb, more skeptics are asking the question: is now the time to short gold? If your answer is yes, you have several exchange traded fund (ETF) options.

Gold has hit yet another record today, touching on $1,284.50. With fast-rising prices often comes an increasing level of gut-checking: Is this a bubble? Is this the top? Do I get out now or wait awhile? [What’s Next For Gold ETFs?]

The case for gold rising further is strong. After all, billions are flooding into the physically-backed ETFs, economic uncertainty and market fear are still high and we haven’t even gotten to the fact that Indian wedding season is around the corner. [How to Protect Yourself In a Gold ETF Bubble.]

But gold could also weaken soon if too many people decide it’s either gotten too high or they just want to take profits.

There are two ways to insulate yourself if gold turns sour: ETFs that short gold and a solid trend following plan.

Shorting. You can use short ETFs in a couple of ways: either as a hedge to a current long position on gold or as a straight short play, if you believe gold’s rally is done. Shorting is not for everyone, though. Read our special report on the subject and make sure it’s right for you before you buy.

ETFs that short gold include:

  • ProShares Ultra Short Basic Materials (SMN)
  • ProShares Ultra Short Gold ETF (NYSEArca: GLL)
  • PowerShares DB Gold Double Short ETN (NYSEArca: DZZ)
  • PowerShares DB Gold Short ETN (NYSE Arca: DGZ)

Trend Following. When investors don’t have a plan for getting in and out of the market, the tendency is to defer to their emotions and “gut feelings.” If you’ve been burned by your emotions in the past, you know this. This is why we recommend a simple strategy for buying and selling. The one we use is trend following, which relies on the 200-day moving average as a signal. Using such strategies helps you be in position to participate in potential long-term uptrends while having you out before you’ve ridden a position to the bottom. [A Trend Following Plan for All Seasons.]

Tisha Guerrero contributed to this article.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.