There are two kinds of Gold & Silver Investors.
The first group bought because the prices were rising and they hoped prices would continue to go up so they would book some profit. The second group bought because they realized that something is deadly wrong and that sooner or later the music will stop, the financial system will collapse, or come to a halt and we'll get to live with all the goodies which come with a bank holiday.
Since September 2011 both groups have been caught and locked into the same correction and bottom formation. It happened that through massive intervention Authorities and Bankers actually not only managed to stop the rising price of Gold but could even bring it down to $1160.
The fact that during all these months the big boys (Russia and China) welcomed the cheaper gold price and used the opportunity to buy massive quantities of Gold seems to escape the reasoning process of the investors belonging to the 1st group.
The fact that the demand for Silver Eagles was so astronomically high that the mint had to stop the sales on several occasions, also failed to be noticed.
Even the fact that today everybody knows that Gold was rigged (just like the Libor, Interest rates and Oil were/are rigged), doesn't seem to make the slightest difference.
The 1st group only looks at the price. Price used to be $1920 and now it's only $1220 . And that is a 36% top to bottom loss. Therefore the reasoning is that everybody who bought or was advising to buy Gold at $1920 was deadly wrong. They at least could have sold their Gold at $ 1880 and have bought it back at the bottom or $ 1080 , couldn't they.!?
Instead of looking at the facts, the 1st group is unhappy as can be and even considers selling out the positions. After all, price has come down instead of going up…and isn't price always right. So this was a bad investment !? Or was it not?
This is where the misreasoning starts. Gold is Gold and therefore the ultimate money without any counter party risk. It's real intrinsic value doesn't fluctuate. What does fluctuate is the PAPER PRICE or better the rigged price on the Futures markets.
