Gold’s Trend
The continued downward pressure on gold is being driven by futures contracts (paper gold.) Because gold futures volume outweighs actual physical transactions their influence is over-weighted. The central banks are still buying and the gold-backed ETFs are continuing to increase their physical holdings on a daily basis. All of this provides evidence that this price correction is simply a “paper phenomenon”.
This is a perfect time for accumulation. If prices move lower, it becomes even more attractive to continue to accumulate. Buying physical precious metals is very counter-intuitive. When you don’t want to buy, that is when you should. And when everything screams you should buy, it is often time to stand aside. Purpose to think and act the opposite of the masses.
I currently work with a handful of financial advisors that recommend an allocation of physical metals to their clients. It is these advisors who are truly client focused, because in recommending such, they are often doing so at the expense of their own compensation. I applaud these professionals, because they truly are advisors and advocates for their clients’ best interests.
All Things Considered – John’s Commentary
Stay the course. Accumulate in modest amounts, steadily over time. Don’t over think the price movements.
Our goal now is to have most, if not all, of our position when prices break through and run to $2,000 and beyond (which they most assuredly will).
Quote of the day: “Gold bears the confidence of the world’s millions, who value it far above the promises of politicians, far above the unbacked paper issued by governments as money substitutes. It has been that way through all recorded history. There is no reason to believe it will lose the confidence of people in the future.” – Oakley R. Bramble
