Gold Investing – Don’t be a Follower
crystalline gold nugget
The blunt reality is that most investors are not well-informed, run with the crowd, follow momentum rather than generate momentum, and don’t watch market fundamentals very closely. Many individual investors lurch around after they see a big cahuna spew an opinion on CNBC or Bloomburg, and let their opinions be dictated to them. Big houses that move lots of cash around follow technical guidelines that aren’t that hard to keep track of, and every move the fund managers make is published someplace or another. It’s just not that difficult to keep ahead of large numbers of other investors who, being large numbers of investors, create massive statistical trends that can be appreciated and anticipated.
Buddah-boom, buddah-bing, then KA-CHING.
Can anybody explain why physical gold market is so tight if not for preservation of wealth, or as an insurance? I store about 50% of mine in $. The rest are in some other currencies (which I believe won’t be destroyed in this depression) + Gold and silver + real estates.
As for $, massive devaluation is a must in order to rebuild America. It can not hang on an economy with 70%-80% services, a large % of which is a money losing financial games.
The rise of $ in the past few months are the result of several moves: payment squeeze on trade deficit countries who still prefer to settle in $; withdraw of oversea investment by US investors; potential easing by other central banks while the US is already done.
It appears to me all financial tricks have been played out. Currency swaps among other central banks are on the rise, which clearly try to squeeze the $ out of their mutual trade settlement system. The world can not go back to “goods for goods” trade. But they are trying to find other ways to settle. Wolrd trade volumes are falling fast.
Australian gold nuggets
To understand how gold really did during late 2008′s devastating stock panic, you really need to consider all these currencies concurrently. The takeaway is gold’s panic performance ranged from excellent to spectacular in 7/10ths of these currencies which include the very important euro and British pound. Only the US, Japan, and China saw local-currency gold charts that looked weaker than investors hoped during the panic episode.
In much of the world, gold not only held all of its value, it hit all time highs at the end of 2008.
California Gold Nuggets