No matter what we do, we must keep a ‘Perspective Mind’ without confusion and distraction from noises. Having said that, we must also know how to make sufficient preparation and to make wise decisions at the right time.
Make no mistake about it. The next few years will be profitable in some sector of financial markets beyond your wildest imagination if you know what is going on with the global economy and if you know how to take the proper steps.
Today, I want to bring your attention to gold and silver (again) which I have not talked much in the past few weeks.
Multi-millionaire gold investors like Jim Rogers, John Paulson or Rick Rule are among the wealthy ones who all missed the timing cycle of selling gold at the peak price in 2011. Do they really care as the price keeps on going down from the peak price? They are probably happier because they can use ‘cost averaging’ to buy more as they all believe that gold will sky-rocket one day in the future. But for average people like you and me, we have limited funds and we do not have as much holding power like them.
Many average investors (the public or the retail investors) bought gold in 2010-2011 when the price was between 1500 and 1920 and due to the last 21 months correction, I believe that at least 70% of them have been forced to liquidate. It is really very disheartening to see that they all exited at a loss.
Based on my experience, I believe that most of them will never come back to the gold market anymore. That is why in any kind of investments, the winners always belong to 2 groups of people:
1. Rich investors who have the long term prudent vision and holding powers with a lot of bullets to fire along the way.
2. Smart money Traders/Investors who know the game well by using 3 kinds of analysis (fundamental, technical & Cycle Timing) to give them a big advantage over the herd (average investors)
Major correction (or crash) always causes most of the average investors to exit the market at a big loss and not only that, they always make a vow of not coming back to the market again. Look at 2008 GFC - at least 90% of the investors were losing money and they all vowed not to touch the market again. Guess what, after they made the vow, the Dow Jones has gone up almost 130% since then and almost all of them have missed the big run. Probably most of them are still sitting on the sin bins lamenting the big loss in 2008.
But, eventually they will be lured back to the market again (after witnessing the on-going late hot and wild party) when the price has reached near to the peak. Believe it or not, once more, and most likely, they will be sucked into the black hole by buying at the major cycle top.
The current situation for the gold market is different - it is still moving into the price abyss. That is also one of the reasons why nobody is interested in the gold market anymore. But abandoning the gold market at the critical time will cause most investors (including the recent gold losers) to completely MISS the next great profit opportunity in gold and silver because they have no clues why gold and silver will go up again after the much needed correction like the Dow Jones as mentioned above.
I have done a very detailed analysis about the gold cycle timing. Not only that, I can tell you the steps you ought to take to maximize your profit potential for gold in the months or years ahead. It is all about 3 kinds of analysis which are mentioned above. Remember the words that I always like to use: There is a time to buy and there is a time to sell. Nothing goes up or down in straight line.