I wish someone slapped me on my face few months ago and ordered me to get out of the gold market.
Since I was my own boss, there was no one to order me. I was too blindsided, confident....I thought I had a pulse on the gold market. Little did I know what was about to unfold. Now it is too late to cry over. Substantial damage has been done.
Since 2013, incurring heavy losses, it took me 4 years to come on top .....see gains in my portfolio.....good gains....massive gains...I didn't knew what to do with it. I thought it will continue to grow bigger and bigger. I was not willing to buy highly priced property in Sydney( I already have 2). I already am and always was involved in retail business. There were some guys and specially WOMBAT53, ringing the alarm bells for quite sometime. I would just not listen to anybody. I thought others were living in fairy land, In-fact, I was the one living in dream world( fairy land).
What took four years of building, thousand & thousand of research hours, a lot of family time sacrifice, burning midnight oil, a great deal of pain. All that gain, not all, it feels like all, but say 75-80 % of gain got wiped out right in front of my eyes in a matter of 5-6 weeks. Gone in smoke...puffff.
Anyway, I had drawn a line, how far I should tolerate this bloodbath. 1140 was my level. Now we have even sunk below this level. So with great deal of pain I sold nearly half of my portfolio yesterday. I will be selling today as well. Just keep 2/10 of my holding from now on. If this market comes back to life next year or ever, I can always re-enter. How stupid I was, why could I not think like that at the highs!!!!! As they say fear is more powerful emotion than greed. You can say I have almost capitulated. It would been a great deal better had I capitulated 2 months ago. So the smart ones and fearful ones who got out early....well done. There's time to be brave and there is time to be fearful. If only one would know to act and time that will make fortunes in the market. I certainly couldn't.
Now as one can feel I have turned bearish. Very bearish. I just don't know what will make this market to turn around and why it should turn around. All gold believers must have learned by now fundamentals do not matter, at least in the short run. I don't even know how long or short is a short run.
People would recall couple of months ago I actually sold some, reduced exposure. Then with all the US election hype, like many gold bugs, I also thought D J Trump would win and gold would go to 1400. I went all in once again big time. I got killed, taken to the wood shed for slaughter. I think regardless of who won the election, the outcome for gold would have been same. The market makers, billionaires had all planned.
They played a massive scale game world wide......got in the lows of last year, manufactured a great rally, once in a lifetime, sucked in hundred thousand & thousands of small and big investors.....they have left the market long time ago. This was all one big game.
Now the gold companies are real and the shares of the companies we bought and sold are real. How real is the value of those shares, we don't know. The performance, profit and loss will determine the value of those companies which all depends upon one and only one thing.( The USD GOLD PRICE), which unfortunately is on free fall. No one knows where will it stop. The USD is on tear. There is a worldwide war on cash from various governments. I never thought gold would win against the USD, I thought it will lose less badly. I was wrong on that as well.
Lots of frustrations, despair.....I just hope I learn from this... if I ever learn.
All the best.
P.S:- This is post I originally posted at BDR forum but would like to post at other forum if anyone can learn anything from it.
SLR Price at posting:
50.5¢ Sentiment: Buy Disclosure: Held
