Picking Up The Pieces (of Gold)

[homekung]

There was hardly enough time to grab hold and hang on to the top of the cliff before falling into the ravine. Gold prices had been rising persistently since September 2007. The commentators and advisers were nearly unanimous in their opinions that Gold was headed higher still, because the "fundamentals" required it. Interested investors were 95% (or more) bullish, which meant that almost everyone who favored Gold was already invested in Gold, leaving themselves vulnerable to a slashing decline if even one sell order finally tipped the balance. As is the case with many commentators, advisers, and economists, they were projecting past price events linearly into the future; but the markets don't work that way. The markets move in patterns; the patterns repeat; and they can be predicted, although not necessarily with respect to timing.

see all