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| (Photo credit: שאול חנוכה Shaul Hanuka) |
I have encountered a similar scenario with friends and family. When gold was trading at $1,900, they thought they were too late and complained about missing the boat. Now that gold has corrected to below $1,600, they believe it is no longer a good investment and that the bull market may be over. Again, there is never a good time to invest in gold from their perspective. It is either too high or too low, so might as well stay away from the barbaric relic. Fear dominates the psyche of most investors, which is why they are sitting on the sidelines with negative real gains in the past decade.
Central Bank Price Suppression?
Many naysayers observe that the precious metals market is rigged and claim that you can’t possibly win against the central bankers. They are too powerful and will certainly keep a cap on the price of gold and silver. After all, they can crush the market with paper leverage at anytime, right?
Yet, gold has risen from $300 to $1,600 in the past decade for a gain of more than 400%. If you sold at $1,900, you would have realized a gain of nearly 550%. Meanwhile, silver has gone up 10X from $5 to $50 in the same time period, before correcting to $30 or a gain of 500%. Many of our favorite mining stocks are up well over 1,000% during this time period, even with the sharp correction we are currently experiencing.... Continue to read.Many naysayers observe that the precious metals market is rigged and claim that you can’t possibly win against the central bankers. They are too powerful and will certainly keep a cap on the price of gold and silver. After all, they can crush the market with paper leverage at anytime, right?
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