-- Posted Wednesday, 25 April 2007 | Digg This Article
And what is ole’ King Cole (Gold) up to these days? Just can’t seem to be held down, huh?
Have you noticed how when gold is at a low people say it is finished and when it is rising they say it is ready to crash. The important consideration is to look at the overall average. And the overall average the gold price is sustaining is doing quite well. And ole’ uranium continues to climb higher still.
Well, you should be happy if you are taking to heart what you read in these articles and follow their advice. You should be profiting quite nicely on gold and uranium and other resource stocks now as this bull market builds in intensity. Probably the greatest concern now is for those who are finding success battering their front door down and learning how to adapt to that success without it destroying you or bringing out of alignment your real priorities in life.
Sam Kirtley - “It is my firm belief that this gold bull will see gold prices go significantly higher than they did in 1980.” “Firstly for the previously mentioned reasons of the effect of the Internet on the market, which sends prices further in both directions. Secondly there are the blue chip reasons while gold is looking very bullish, a declining US Dollar and a weak economy. However the economy is actually in a far worse state than it looks as credit is literally out of control as people use their homes, as virtual ATM's to fuel the recent economic and real estate bubble.” “But I am afraid that all of this is going to come crashing down in the worst economic depression since 1929, in fact there are some analysts predicting that this coming crash will make the great depression “look like a walk in the park”. I sincerely hope that this is not the case, although it would be extremely beneficial for gold prices, nobody wants to see others suffer, especially when it is not entirely their fault.” “Then there are the issues with Middle East and oil supplies, which only add fuel to the fire that is powering gold prices to the moon. I think that we are currently somewhere in the middle of phase two in the gold bull market. Gold prices still have a lot further to go and we maintain our target here at gold-prices.biz of $3000-$5000.” Click
Maybe I am stretching it a little but I look at success in these markets as equivalent to a working happy marriage. Our goal in either is a perfect union and harmony. We want our marriage to enhance our lives and we want our financial success to enhance the lives of our family members. Success, just as a marriage, will strip our soul down to its true values. Marriage and/or success will reveal greed or mercy and act as a powerful illumination on what we truly are inside.
“[Marriage] is the merciless revealer, the great white searchlight turned on the darkest places of human nature.” Katherine Anne Porter
While we talk a lot about the road to wealth and success lets spend a little time discussing how we act upon arrival. Anyway, what does successful investing in the gold and uranium market have to do with marriage? Either represents the greatest test of human character. Making a lot of money, if that is our only goal, by it self can lead to personal dissatisfaction and lack of true fulfillment. Just as a marriage with too many unreal expectations can lead to a great deal of unhappiness.
“I believe that much of the dissatisfaction we experience in marriage comes from expecting too much from it.” Gary Thomas, SM
We can come to expect too much from wealth when it starts arriving by the wheel barrow load and we have no other worth while pursuits at hand. Don’t forget that money is simply a tool for achieving other more worth while goals. It can add to our lives or take away. What’s a strong contributing factor to the strength and persistence in this powerful and growing bull market?
“Mutual fund officials say the two gold ETFs launched so far, the Benchmark ETF and UTI Mutual Fund's ETF, have drawn enthusiastic response. About 41,000 investors have so far applied for the gold ETFs…” “Investing in gold can now be as easy as calling your broker…” “Benchmark's gold ETF listed on March 19, after its new fund offer received 15,000 applications…” "Over the next two years, we expect gold to emerge as a strong asset class and the gold ETF as an efficient manner to have the asset class in your portfolio…" Click
Thad, below, brings up an often repeated question. If the US dollar is tanking why do we want to sell our stocks for this worthless currency?
David,
“I agree that profits should be taken, but I don’t want to trade PM stocks for USD’s that are dropping like a rock and at an ever increasing rate.”
Thad H.
Well, folks. I don’t know about you, but when I pay my bills the power company and the water company only accepts US dollars or the equivalent in a US checking account. Sorry to break this news but we still must keep a portion of our money in US currency for the purpose of paying our bills and purchases in general in this country.
Dave,
“You state: The worst mistake you can make is “liking” the company you have purchased a stake in. Instead, we should like merely the concept of profiting from that stock. Stocks exist to be traded. Shares don’t exist to be loved or liked. We invest with the hope of selling the blasted thing down the road for a profit.” “But when? If I bought X company and have made 100% of the stock and the gold price is going up when do I sell or how long do I continue to hold it. How do you determine the amount of upside to a junior, mid and large cap stock has in a gold bull market?”
Tim and Anna M.
Let me share here a secret. No one, not even the biggest gold guru, can predict when a stock has reached its ultimate peak. And for those analysts who provide their subscribers with a sell price do you think anyone really pays attention and sells the blasted thing? Greed kicks in convincing everyone to hold on for an even higher price.
So how do you know when to sell?
I believe that before an individual buys the first share they should determine what type of eventual gain they would be comfortable with. When I hear of folks who have doubled their money and they still refuse to sell at least a portion I smell greed. No one wants to call it that. We tell ourselves we humbly merely want to ride the stock to its peak, but don’t fool your self.
When you attempt to guess an ultimate peak you are playing with both fire and greed big time. Think about it. What kind of an idiot will refuse to be satisfied when their money doubles? You should be jumping with joy and your good fortune and at least sell a portion to capture part of your original capital. The truth is investors attempt to use the principal of “reason” as an excuse to hold a share for longer than it is safe to. Hold on for the “long term” if you feel that confidant, but at least sell a portion to recoup your original capital.
Is anyone out there managing their personal finances well?
Greetings David,
“I am a family man trying to do the right things. I saw the top of the housing market and we sold our home in California in 11/05. We moved to the Midwest to raise our family. We put 50% down toward our current home, and I put the remaining 155K into PM's because I saw the catastrophic effect of the twin deficits and the decline of the USD.”
Michael B.
The following below is an interesting and thought provoking comment.
Dear David:
“How ironic it is that with precious metals it is honestly true that the future is straight up forever because these metals are in finite supply and will be used up one day.” “Should we not seek junior companies shares with ounces, pounds and tonnes in the ground which are trading at a discount to the metals worth and then hold onto these shares forever, only selling little bits over time to fund our retirements? Is buy and hold only bad for resource stocks? I for one certainly hope not!”
Rob P.
Hold on to “any” share for ever? What happened to old fashioned conservatism and prudence? If I hold on to anything “forever” I will eventually be “forever” dead. Let me remind all who will listen that the goal is to make a profit and we only do that when we sell.
And back to gold?
“Gold rose in afternoon trade to breach the 692 usd barrier as the dollar continued to slip against sterling and the euro…” “Gold remains a dollar story,' said Jon Nadler, an analyst at Kitco.’It is looking at the pound and the euro and it almost has no choice but to rise.” Click
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Don’t forget to email me. If your comment is interesting I’ll post it for others to read.
David Vaughn
Gold Letter, Inc.
David4054@charter.net
The publisher and its affiliates, officers, directors and owner may actively trade in investments discussed in this newsletter. They may have positions in the securities recommended and may increase or decrease such positions without notice. The publisher is not a registered investment advisor. Subscribers should not view this publication as offering personalized legal, tax, accounting or investment-related advice. The news and editorial viewpoints, and other information on the investments discussed herein are obtained from sources deemed reliable, but their accuracy is not guaranteed. Authors of articles or special reports are sometimes compensated for their services. © Copyright 2007, Gold Letter Inc.
-- Posted Wednesday, 25 April 2007 | Digg This Article
