Posts filed under “Gold & Precious Metals”
This morning, I have a massive 2500 word piece at Bloomberg looking at the rise and fall of Gold.
The key to the discussion are the 10 lessons that we all can takeaway from that cycle and the experiences of Gold investors. Hopefully, these will make us each better investors in the future.
Here is the intro:
“It has been quite the ride for gold: from under $500 an ounce a decade ago, to above $1,900 in 2011, gold gained more than 400 percent. Since its peak of ~$1,921.15 on Sept. 6, 2011, however, the shine is off the yellow metal. Gold plummeted 38 percent, recently breaking below $1,200. Yesterday’s close is within 5 percent of the lows, at $1,241.
If a 20 percent drop is described as a bear market, and a 30 percent fall is called a crash — what do we call gold’s almost 40 percent plummet?
This column is not an “I told-you-so” or an exercise in “Goldenfreude” (describing a “delight in gold bugs’ collective pain”). Rather, it is an attempt to learn some investing lessons from the epic rise and horrific fall of gold.
As an investor, I am a gold agnostic: When used properly, the metal is a potentially valuable tool in an investment arsenal. There are times when it makes for a profitable part of a portfolio, as in the 2000s. There are periods when it is a speculative and dangerous trade — such as the 2010s. There have also been decades when it does nothing, earning no return, generating no income, essentially dead weight to a portfolio, as in the 1980s and 1990s…”
Full column after the jump:
Gold and Silver Are Manipulated The Guardian and Telegraph report that gold and silver prices are “fixed” in the same way as interest rates and derivatives – in daily conference calls by the powers-that-be. Long-time trader Andrew Maguire told told King World News this week that 2 JP Morgan whistleblowers have handed over evidence of…Read More
Financial Psalm No. 16 16:1 Preserve me, Gold, for in you do I take refuge. 16:2 My portfolio, you have saveth, and it sayeth: “You are my Saviour. Apart from you, I have no good thing…not even Bitcoins” 16:3 As for the Silver and Oil which is in the earth, they are also excellent ones in…Read More
How Gold Lost Its Luster, How the All-Weather Fund Got Wet, and Other Just-So Stories John Mauldin July 3, 2013 We have not revisited the topic of gold in Outside the Box recently, mostly due to the fact that nearly everything I read on the subject is derivative of what I have been…Read More
This discussion is about probabilities and investor psychology — not predictions.
Source: Yahoo Finance
Note: I understand getting heard above the clutter and attracting clicks and all, but this headline is rather different than what we actually discuss on the video above:
Back in my days as a trader, I would peruse the lists of 52 week lows looking for reversal candidates. The key was finding an intelligent entry that had a very tight stop, so it presented a good risk reward. I am happy to risk one dollar to make three. Slowly build the position over…Read More