Gold getting Bashed Again - Are You A Long term Investor Or A Short Term Jockey?
Posted: Wednesday 14 June 2006 - Gold/Silver & Mining Section
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Gold has lost another $20 plus over the last few days with many in the market starting to question the validity of the bull.
Perhaps they might have a case if they’re short term trading attempting to trade the swings, long and short. But for long term gold investors there is little to worry about because this is exactly what commodity bull markets do, have sharp corrections.
In fact this is what all markets that have a crazy tilt do –
- Remember the tech boom of 1995-200? Wasn’t it characterised by stocks like Amazon, Broadcom and Cisco getting slammed for 30%-60% in less than a month before rocketing another 100%-500% higher?
- If you’re really a long term bull in gold then you’ll be welcoming this recent sell off so as to selectively add to your portfolio
In our view there’s little way out for the US but to inflate but who knows when the real power of this inflation move will set in? It could be this week, next month or even 2 years hence but it’s coming that’s for sure. And don’t get caught up in the laughable weasel Fed words of the Fed suggesting that they’re going to fight inflation because they’re actually the ones who’ve been causing it in the first place.
Another extremely important point to consider is just what do the top 1% of Wall Street want? Inflation crazy markets where billions can be made and milked or nice, steady as she goes markets where trading volumes are dull, nothing ever happens and more importantly
Out advice for long term gold bulls is the same as it’s always been, the journey to the top of the mountain will be hard and treacherous but the easiest way to get there is to just buy, sit on what you’ve got and let the time pass without getting worried about what happens on a day to day or even a week to week basis.
