It’s been some long and grueling months for gold traders, and those watching PM’s and the miners in general. Week after week of potential bottoms or reversals – only to be followed by selling, selling and more selling. The price of both silver and gold in the “paper markets” passed the point of “rational” some months ago with seemingly no end in sight – a real tough spot for those holding strong…for sure.
We touched on this some weeks ago in that the problem with todays “investing environment” is that it “isn’t rational” – not in the slightest bit! With the amount of global stimulus being pumped into markets / Central Bank intervention etc – this isn’t in any way the market that most of you may be accustomed to investing in. Looking for similar results as one has experienced in the past has likely been recipe for disaster.
The fundamental reasons for owning gold have not changed, and likely grow stronger by the day as “paper money” planet wide is printed like toilet paper with hopes of keeping the ship sailing in the right direction just a little while longer.
How do you keep your sanity as a trader of Gold?
I would advise dropping your expectations. As simple as that.
I find it pretty unlikely that anyone is going to “time the trade” and make some massive “get rich quick” type thing any time soon with the purchase of Gold – however…..if one can lower their short-term expectations and try not to “treat it like a trade” – there’s plenty to made…….. if you can remain patient.
With the US dollar moving considerably lower over the next few months – this may be a decent time to start building positions – but in all…..we could just as easily see Gold consolidate here for months, and months on end. One needs to realize the Fed’s agenda and how a blatant rise in the price of Gold seriously undermines the goal of crushing USD – so as long as Ben’s got his finger on the printing presses – It’s hard to imagine gold getting too too far out of the gates.
Kong! thanks for sharing your thoughts
Thanks PC – If only there where easy answers right?
If only “any of this was easy”….as we are clearly in uncharted waters here. Point being – be sharp – take nothing for granted – and keep your eyes peeled like never before.
Consider that the current “transfer of wealth” has the average mom n pop investor ( and I say this with much respect , as I am one in the same ) at the absolute lowest on the totem pole. No bank or financial advisor ( in this environment )has any interest “other” than to separate you from your savings as quickly as possible..AND – ANYTHING GOES!
The general investment community has little option but to “seek yield” and ( unfortunately – much like sheep or cattle ) run with the heard – directly to slaughter. This is the most significant transfer of wealth seen on this planet in mine / yours / your grandfathers lifetime – and most won’t realize it’s happened, until looking at it in the rear view mirror.
Stay safe – in any and all ways that you can.
is it safe to stay long JPY cross (vs comdoll) and short USD in all pair ?
I expect USD to take a bounce here after such a steep decline…but imagine it will be short lived – lasting perhaps til mid week ( or good ol Thursday data day)..then rolling over for additional “steep decline”.
ALong with this bounce in USd ( as well likely U.S equities ) I imagine JPY to fall – providing for excellent “re entries” and another nice run in both…ie USD continued down…and JPY moving higher.
thanks Kong … already bought accoustic guitar with your Kong brain here … i’m lucky to find your blog … indeed
You’ve bought an acoustic guitar? – this is fantastic news as I own / play many!
I can’t say that I’d know what to do with myself ( outside of math / physics etc ) without my guitars!
Hi Kong and all,
Sorry for the delay to reply, I’m traveling. I also appreciate your posts subsequent to this one.
I take this message as “hold your gold until it’s old”. I agree. There are few legit reasons for gold to stay down and the stock markets to stay up. Re stocks, better a year too early than a day too late.
Here is a new article from Wealth Daily (free and sometimes helpful). It reinforces your ideas mentioned in this post.
wealthdaily.com/?lloct=2
Yo Dev!
I hope all is well! – stop posting outbound links here man as – they don’t stick and sooner or later the “spam filter” is gonna getcha!
Get in here and contribute all you can etc – but the links are a no go.
If you’ve already commited to Gold….ya – it makes no sense to sell here.
OK Kong,
I understand about the links. Hereafter I’ll paraphrase and credit the author. Folks can google if they want to do more research.
Yo Dev!
The share of info is great…don’t hesitate – just let me explain the links.
To many “outbound links” kill the sites “relevance” in google so….when google comes poking around here…and gets sent to a 1000 other websites…this is bad for Kong.
I’ve been editing links to leave out the “http://www part” and perhaps users can still just copy and paste.
Good?
No worries Kong. I appreciate the heads-up so everything will go smoothly on your end.
What are your thoughts regarding Canadian Dollar?
Canada has done well – and should continue to do well “relatively speaking”.
The coming global slow down will take everything down to a certain extent, but as far as I can see the good ol loonie sits pretty much top of my list.
The resources are there, the banking is “kinda there” and the country is on very solid ground.
I love loonies – and see it as one of the absolute strongest currencies moving forward, and it’s NOT cuz I’m Canadian!