The State of the Gold Market

Investing has almost nothing to do with math or complicated financial equations.

If that were the case, then no one would buy and sell stocks – you’d have a computer do it for you.

The truth is, your average fifth-grader has more than enough mathematical ability to be a good investor. Sure, more math knowledge is always better, but the list of super-rich mathematician investors is quite short.

The real skill set you need to be a good investor has more to do with controlling your emotions.

The market has a tendency to make you feel an emotional need to sell when you should buy, and to buy when you should sell.

That’s because people are social creatures, and it makes us uncomfortable to break from the crowd – and to do unpopular things at unpopular times.

While it’s certainly my job to help you find attractive commodity investments, I also see it as my job to make sure you don’t make emotional decisions during this bull trend in commodities.

A year ago, many gold investors witnessed a substantial correction in gold prices that lasted until late July of this year.

Gold dropped from its all-time nominal highs of $1,900 down to $1,550, and more than a few pundits called it the end of gold’s bull run.

But back when the correction started, in October of 2011, I urged caution and patience.

I wrote,

“We're at an important crossroads for this bull market in commodities.

“Every bull market enters these crossroads, and even the most fearless bulls are tempted to give up – to sell out of their positions and consider themselves lucky that they were able to be along for the ride – and to escape with any profits at all.

“… if you're looking for the exits, then my personal belief is that you're a bit premature – and that if you sell out of your gold (and silver) positions you will regret it. 

“Be patient.”

I hope you heeded my advice. This gold bull market is still intact. None of the underlying reasons for this bull market have changed – if anything, they’ve only strengthened in the last year.

We’re still seeing trillions of currency units being created out of thin air by the world’s various central banks. We’re still seeing even more massive amounts of debt put on national balance sheets.

The only way our leaders know how to fix our debt and growth problems is to print. And gold will be the victor.