Whats Happening With Gold & Silver? Fear Is Running Wild, Arm Yourself With Greed.

This is a very short update.

As we’ve seen this past week, Gold & Silver have been selling off, this has created, depending on which side of the fence you’re sitting on, either:

1. The best buying opportunity you’ve had in 5 years.

or

2. The signal that the Gold bull run is OVER.

Which one is it?

It’s quite simple to analyze:

First Question: What cause the sell off?

Firstly, conveniently, Goldman Sachs downgraded and market Gold as a sell… just in time for…

Mario Draghi to suggest Cyprus should sell it’s Gold to pay it’s debt, hinting to the markets that this could happen with all other countries, and be forced. This would mean central banks would start selling Gold, hence the price went down Friday.

Then, Asian markets opened this morning, margin calls and panic sell-offs began… This collapsed Gold & Silver further, then a few hours later…

The US markets opened which found traders of Gold & Silver now forced to liquidate positions to manage their losses.

This is what has created the sharp, fast sell off in Gold & Silver between Friday to now.

I have never seen anything like the sell off, the speed is phenomenal.

Central Banks are STILL buying Gold

They’re STILL printing money.

Economic data is STILL weak.

Hyper-Inflation is STILL a huge danger

It begs the question… What ACTUALLY changed?

The answer: Nothing. Besides perception.

The “idea” that Gold was no longer a safe haven, caused this.

The fundamentals are still there.

So, who is losing money RIGHT now?

– Traders
– Speculators
– People that are over-leveraged

If you’re in this for 3 months, you just got killed…

Be an investor. Get serious.

This is one of the best times I’ve seen to look at adding more or starting your portfolio.

Remember: the fundamentals haven’t changed.

That means the price has gone down, but the facts haven’t changed.

Fear is driving the market. And as every great investor has said, when Fear is running the streets, arm yourself with Greed.

Exciting times, how are you feeling about it? Let me know in the comments.

 

0 Comments

CD

April 15, 2013 at 6:50 pm - Reply

In at $450/oz.. Time to buy a bit more, ISTM.

Bill

April 15, 2013 at 7:05 pm - Reply

Quite relaxed and will still be seeking option opportunities

Bill Gray

April 15, 2013 at 7:09 pm - Reply

I am so scared that I just went out and bought more silver. Who would be foolish enough to believe the world’s biggest liars, ie. the Fed, GS, and BOA to name just a few? It’s all about wealth transference. They want to transfer our wealth to themselves. That is how they control most of us. I am not buying into it- I will buy more G&S.

Adrian Hibbert

April 15, 2013 at 7:31 pm - Reply

I will always continue to Buy Gold and Silver on a monthly basis, no matter what the price.

Once I hit around 20% of what I am worth in Gold and Silver, then I will stop.

Adrian Hibbert
http://www.AdrianHibbert.com

Robert

April 15, 2013 at 7:43 pm - Reply

Great time to be buying and adding to my existing stock. I agree entirely with your reading of the situation Minesh. Wish I was buying my existing stock NOW..

Paul

April 16, 2013 at 9:16 am - Reply

Although the fundamentals remain the same, the perception of gold as a safe haven has been damaged and this could take some time to be forgotten. Another significant black swan that doesn’t involve dumping of sovereign gold stocks might change things. I think it has probably pushed back the inevitable bull market by quite a bit.

Leave a comment

Your email address will not be published. Required fields are marked *