Have just read this one. I, for one, needed the kick in the pants it gives to fully fledged bugs.
Sinclair says exactly the same thing - sell 1/3 of your holdings on ups, and put the money gained back into the stock on the dips.
Given that the gold market seems likely to be volatile this year, I'm attempting to follow e.g sold some GTMO yesterday and put the money into SBMO .... but I don't think that's what these gurus mean. LOL. ah, well.
Wake Up!
It is a well-intentioned scare tactic to say, as some do, don’t sell any gold shares as any day now gold will rocket $20 or $40 in a day & you’ll miss out. This scare tactic has been used for years. I used to sympathize with it but over time I found it was self-delusion. 99% of the time, gold moves in relatively small increments, up&down. If U never sell, U lose profitaking opportunities, which are then normally followed by cheaper prices to buy back. Those who use this never-sell mantra have good hearts & are grand gold supporters but they are never skilled chart analysts. If they were they would know U can make 400% more by trading, ie, by selling on any price run up & buying on any down drafts. U won’t catch precise peaks or lows but U’ll keep racking up profits. Those who just hold & hold & hold are good people, but they are cheating themselves of golden gains. The emotional appeal of waiting for a surprize one day jump of $50 in gold is strong, but it hasn’t occurred in 25yrs. It may occur sometime in future, even more than once, but if U keep a heavy core position, aside from a trading position, U will benefit from such a freak event in any case, even if it occurs the day after U sold & banked some profits. Sell&buy back is a formula for great success. Only-holding is a formula for mediocre success. It’s probably a case of gaining 400% vs 100%, on average. I’ve done it both ways. From experience, I learned that fat gains come from replanting & harvesting & replanting, over & over. Not via storage bins. Try it. The proof is there to be seen. U have nothing to lose but your self-delusion, & U’ve much to gain!
Harry Schultz http://www.hsletter.com/GCRUpromo.html
Submitted by gold guru of the 70’s Harry Schultz, of the 39-year old International Harry Schultz Letter and the newer Gold Charts R Us. HS has been in the Guinness Book of Records for 22 yrs as world’s highest paid investment consultant. He has authored 23 books, the latest: Bear Market Investing Strategies (John Wiley & Sons). **************************************
