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.
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?
– 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.