Crazy would be to expect any different when the short term price action has always been that way as long as anyone can remember. I remember buying my very first ounces of gold for $700 only to see it crash down to $500... during the invasion of Iraq 2003 Crazy isn't it. It felt like the end of the world back then for someone in his early 20's. Specially when Australia was helping invade a country with weapons of mass destruction. We were still in the shadow of the Asian financial crises, 911 attacks/Afghanistan, 2000 recession, dot.com crash etc. If ever there was a time for gold to shine, the early naughties was it.
Gold was steadily climbing until the financial system achieve what alchemist have been trying to do for thousands of years; conjure gold out of thin air. Well paper gold to be exact and with the help of Central banks flooded the market with the real stuff. With a threat in Australia of another Treasurer, Peter Costello gold sale the $700 to $500 AUD gold price was achieved in a blink of an eye in 2003 even with all the world issues we were facing... Long term those $700 ounces I bought is up 328.57% in 20 years. Not bad And that is how you make the big $$ in gold. In that kind of timeframes.
I don't get phased much these days when the gold price fluctuates, stock/stock market crashes etc... I just think of it as an opportunity to buy more of the things I like to own - gold, gold miner, cashflow positive stocks.
The way I see it the big problem in the market these days is that the human herd is getting dumber and dumber. This is the root of the problem. - On the retail side we have legions of retail participant that's entered the market since COVID. These act like headless chooks most of the time. Their euphoric highs and downright depressive lows is plain to see on HC - It's not just retail either. Pro's are wedded to the quarterly performance mindset. This makes them prone to selling underperformance instead of looking at it as a LT opportunity. They are not headless chooks but they are definitely "Coattails" out of desperation. Coattail is a strategy mimicking the trades of well-known and successful managers. Ever wondered why trades become crowded so quickly this is the main reason. These pro's just piles on top of each other on trades like a bunch of penguins on the edge of the ice sheet pushing the prices up/down.
I can't complain. I've made a fortune in the markets by making well informed decisions and looking at the LT.
Crazy isn't it. It felt like the end of the world back then for someone in his early 20's. Specially when Australia was helping invade a country with weapons of mass destruction. We were still in the shadow of the Asian financial crises, 911 attacks/Afghanistan, 2000 recession, dot.com crash etc. If ever there was a time for gold to shine, the early naughties was it.
And that is how you make the big $$ in gold. In that kind of timeframes.
(20min delay)