Volatility spells opportunity.
By Daniel at 23 November, 2009, 2:11 pm
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Why is it that anytime someone is trying to be realistic about gold and/or silver, the fans of the two metals attack him? Just because someone may think that gold is going to have a temporary setback, does not mean that he is “paid” by J.P. Morgan or the gold cartel. Actually, you’d be interested, perhaps, in knowing that J.P. Morgan, supposedly a leader of the cartel, predicts $1,300 for the metal this year.
I happen to own a lot of gold, but I know that the market is very volatile, especially given that both are traded on futures markets that are akin to casino gambling joints. Many gold bugs are VERY innocent. There is every probability that gold will be manipulated upwards as well as downwards, if for no reason other than to destabilize the price and make it look like a bad long term investment. In fact, I am fairly certain we are currently experiencing a wave of upward manipulation in both gold and silver, created by the cartel, to destabilize prices.
Remember, the big banks make their money on volatility, and they don’t particularly care which direction a particular asset takes, so long as they can mint money. I am not saying that they are not partially doing the bidding of the Fed, ECB and Bank of England. However, you must remember that the bullion banks thing long term, unlike many gold buyers. They do NOT chase prices up, or down. They buy low and sell high.
There is every likelihood that gold could dip down to $850 per ounce again, before it moves higher. Even Jim Sinclair, who is much of a gold bug as anyone can possibly be, has warned of the possibility that gold could swing by $100s of dollars in a day, at some point in the near future.
Bottom line…don’t be stupid. if it goes down to $800 again, then buy it like crazy, but don’t fall for the bullion bank game, buy at the high, right now, and then be forced to wait however many years before the Fed inflicts hyperinflation on us, and you see your investment pay off. So sit tight…there will be a bullion bank takedown of gold and silver, soon enough, and you’ll be able to buy much cheaper than now, while we are inside a frenzy of way premature inflation hysteria.
- TTolstoy
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