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Financial Sense - Great Message on gold Here are few comments from today`s FS: Meanwhile, the bull market in gold and silver is just in its beginning stages. The media reluctantly reports the price of gold. Yet, for the moment it is still looked upon as an anomaly. Wall Street is constantly encouraging investors to sell out of their gold stocks as the smart money quietly accumulates gold and silver bullion, and gold and silver equities. I have watched each day the money flows of particular gold and silver stocks. You can see the dumb money flow out of equities after one firm or another downgrades the sector. On days of heavy selling, money flow turns positive at the end of the day as smart investors pick up lower priced shares. In one way this is just another example of Wall Street picking investors? wallets. They convince them to sell off their gold stocks that are rising and buy tech, biotech or some other group of stocks that are falling. What is taking place is a wealth transfer of money from weak hands into stronger hands. Strong hands hold the mining shares we own. The float available to the general public is very small. On days we see day traders or fund managers dump their shares, we use it as an opportunity to buy. We aren?t alone judging by the money flow changes we see take place during the day. As today?s graph shows, gold has kept above its 100 and 200 day moving average. Contrast today?s graph of gold with the moving averages of the S&P 500 or the Nasdaq, which long ago have both fallen below their short-term and long-term moving averages. The stock market may rally periodically. That is normal during a bear market phase just as it is normal during a bull market for stock prices to pull back. What you will find in an examination of gold and silver is higher lows and higher highs, a reflection of a new bull market. In contrast, when looking at stocks in general, such as the S&P 500 or the Nasdaq, you find lower highs and lower lows, just the opposite. Both categories of asset classes have simply traded places. One asset class, gold and silver, are in a new bull market that is just beginning. The other asset class, stocks or paper, are now in a bear market that has just about completed its first phase. This is the message of the charts still being ignored. If you?re an equity investor, it is time to cut your losses. If you are in metals, it is time to let your profits ride, for the new bull market of the century is just in its beginning phase. If you?re a day trader, it is time to start thinking long-term. The real money is going to be made in this new and emerging bull market in "things." If you trade out of metals now, you will be buying back later at much higher prices. Gold and silver are being held in strong hands. These metals are much different than tech or other types of stocks. To gold and silver investors, it represents freedom. Gold and silver is nobody else?s liability. Gold and silver have to be produced and can?t be printed like paper assets. The other aspect about metals is that they represent religion. Those who own precious metals are aware of its 5,000-year track record. They own it because of strong convictions held through a very long and protracted bear market. Gold and silver investors represent a different class of investors. They think long-term like the durability of the metals. Those shares of precious metals stocks or the bullion will not be relinquished. Any pullback will only be used to buy from those who are foolish enough to sell at today?s multi-decade lows, something to ponder if you are short, thinking of selling, or just now thinking of buying. |
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| aus der Diskussion: | Durban Roodeport Deep Adr (DROOY) |
| Autor (Datum des Eintrages): | peter.wedemeier1 (20.06.02 09:49:04) |
| Beitrag: | 5 von 421 (ID:6680291) |
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