On a personal note…
During the massive drop in gold & silver in April, May and again in June, I had received a lot of calls from people wanting advice… Should I sell out and sit on the side, or hold on.
That’s an easy answer. Sell some, but don’t sell all!
If you bought at $800-$1,000 don’t sell any, If you bought at $1,200-$1,400 sell and re-buy cheaper.
The trick of it all is when you sell, you want to buy back under where you bought originally so you don’t end up – upside down.
The problem with that is people get too emotional.
Because they sold, they want it to go to zero, so they can buy it back and make a lot of money on the way back up.
They allow their emotions to get in the way. Big mistake. Emotions and investments don’t mix.
Gold is up $200 in the past 2 months and silver is up $6.00 and the people who sold out are not getting back in.
They know they made the wrong decision by selling out of fear, and its the same fear that’s keeping them out of the market and missing out on great profits.
If that’s you, and you need someone to talk to – I’m here.
The Mission Of The Silver News Surfer Has Always Been & Will Always Be – To Preserve Your Wealth, Protect Your Purchasing Power and Create Generational Wealth!
May Health Wealth And Success Be Yours!
On to the business of protecting your wealth…
Mid last week, I posted a story on what I believe is something we all should read again because it gets to the truth of the matter about our emotions in the metals market. It is as follows…
“Big money is now trying to get in on the long side and I think this move up out of this bear market bottom probably isn’t going to behave like a normal rally… it’s going to have a violent regression to the mean…my theory was that we were going to see a pretty strong V-shaped rally out of this bottom…that appears to be what’s going on… we could see gold retesting those September 2011 highs in the next three or four months depending on how hard the dollar falls.”
Important Part: When you have a bear market like we did, people are very nervous and as we come up off that bottom, they’re afraid to [buy]…and so they wait until we start going up again, exactly like what has happened this time—we go up very aggressively, get overbought very quickly—and then they ‘can’t’ buy because it’s overbought…[then] as soon as the dip comes, it looks like the bear market is [returning]. So they ‘can’t’ buy again, and they continually miss this move. –
I repost this because of several conversations I had last week and as much as you folks love reading the Briefs from The Silver News Surfer, sometimes I post too much and you miss an important post.
I believe the above is happening to a lot of you. Your gut says buy, but something in your brain is telling you to “wait and see.”
I also posted something that said Most investors base their decisions on price. Successful investors base their decisions on value.
I say this because there is a tremendous value here with gold and silver regardless of the price. The value is because it is posted almost everywhere I look that there is a shortage of the metal. If there is a shortage of something and a strong demand, it offers value and certainly a higher price going forward – The question is this… Will it be available when you want it?
Look over in India where “Gold Is Now Trading At $1800oz.—Small Factories And Workshops Are Shutting Down”
Also, Grant Williams says… West Is Now Running Out Of Physical Gold
If that were not enough evidence to guide you in the right direction, we have top economists and muti-decade market veterans still calling for a “shock event” in the global financial system.
You know I could go on and on. I say this so to help you to protect yourself for what lies ahead. I believe that these people are accurate about the events they predict, they see it coming. The only thing they can’t do is to predict the exact date and time, but all the warnings are there. Do you still want to “wait and see what happens” and react, or prepare now so you can be one of the smart investors who watch what happens?
Allow me to assist you in understanding these ever changing and challenging financial markets and more importantly, how you can profit on the upside potential and protect yourself from the downside risks….
Now, onto the breaking news that matters…
Matterhorn Switzerland: The Roadmap To Much Higher Gold & Silver Prices – Gold and silver will continue to be the mirror image of falling currencies by very quickly reaching new highs. In the next 12-15 months, gold could reach $2,500 and silver $70. But that is still only the beginning. For a very long time we have seen manipulation by governments in the precious metals markets.
The manipulation we saw earlier this year was absolutely extraordinary. The smashing of gold and silver in the paper market has, in my view, come to an end. The physical market will now take over as the only true market. Paper longs will take delivery and paper shorts will panic. This will not happen overnight, but gradually, over time.
There will be periods with very high volatility, with gold going up hundreds of dollars in one day and silver tens of dollars a day. So we now have a perfect synthesis of fundamental, physical and technical factors for gold and silver, which will be the beginning of a long and spectacular rise. But investors must remember that they should only own physical metals, which must be stored in vaults outside the banking system.
Eric Sprott: This Will Shock Investors & Send Gold Skyrocketing – it’s not too hard to imagine there could be a situation where there is a great run on gold. I’ve said many times that I think there is a shortage of gold, and there has been a shortage of gold for a long time. This got particularly acute late last year and early this year, which I think is what caused the raid. Of course it (the raid on gold) totally backfired as demand just skyrocketed.
We see all of these weird things like this gold leaving London to go to Switzerland. I mean that’s a serious amount of gold — almost 800 tons in six months. 800 tons is about 1/3 of (annual) mine supply, in half a year. If it kept going at that pace it would total 2/3 of (annual) mine supply for a whole year.
So there are all of these things going on in the gold market that tell you there is a shortage. Our own analysis of the supply/demand (also) tells us there is a shortage. The GOFO rate being negative, backwardation in gold, COMEX inventories going down, shipments from London to Asia, the activity on the Shanghai Gold Exchange, they are all saying the same thing (that there is a shortage of available physical gold).
The Center of the Gold Trading World Is Now In Shanghai – Shanghai is emerging as the new center of the gold trading world, as the price shenanigans of London and New York discredit their exchanges, and accelerate the flow of gold from west to east.
The volumes on the LBMA and the COMEX are larger but misleading, because for the most part they represent the passing around of paper claims, at a leverage of 50 to 1 or more, against a diminishing pile of actual gold bullion. They are now running on custom and momentum, but losing substance and confidence with every passing day. This is the direct result of not allowing the market to set the price, and the moral hazard of not restraining overly cynical, if not overtly fraudulent, representations of value and risk.
The market operation that took down the price of gold which we saw earlier this year on the COMEX was so blatant, so heavy handed, so patently obvious that it jarred the world markets, and had the opposite effect to which one might presume it was intended. It was a bureaucratic over-reaction, panic more precisely, to the Bundesbank’s request for the return of their national gold.
Peter Schiff: ‘Spectacular’ Gold Rally Is Coming – While lots of speculators have come and gone from this volatile market over the past two years, Schiff says real demand for physical gold has been increasing the entire time, and that’s going to be his salvation for a core holding that’s lost a third of its value. “So the problem is, the physical gold is disappearing and ultimately the short sellers have to be able to deliver the commodity they are shorting and they are not going to be able to do that,” he predicts.
If he’s right, this will be where the ‘scarcity’ part comes in to play, and gold’s recent rebound will seem like nothing. “I think (the speculators and shorts) won’t be able to buy it back,” he says. “I don’t think that gold is for sale, at any price, because I think it is in strong hands and I think there’s going to be a spectacular rise when these forces try to work themselves out”