Everyone seems to think that gold, silver, platinum, palladium and related miners are all on a moonshot now and will triple, quadruple and more — all without ever looking back – but all that does is convince me why 90% of investors almost always lose money in the markets. They act like herds, chasing the latest trend. They buy the highs and bail out at the lows, in herds…
The comments above and below are excerpts from an article by Larry Edelson (MoneyAndMarkets.com) which has been edited ([ ]) and abridged (…) to provide a faster and easier read.
Fact: No bull market goes straight up, and no bear market goes straight down.
Fact: The majority of investors act out of some kind of peer pressure, chasing highs, selling lows, always getting trapped and spilling blood.
Fact: Bull markets always retrace at least 50% to 70% of their prior rally. In the case of the first leg up, the retracement can be as much as 80% or more. Ditto, inversely, for bear markets.
Fact: Investors who chase markets almost always lose money…and I can tell you with near certainty, that if you are, you’re going to end up losing a lot of money.
Simply look at my latest Artificial-Intelligence Neural Net (AI) forecast [below] of the gold data and cycles, based on thousands of data points and combined in billions of ways to come up with the most accurate forecast. It’s showing the potential for a steep slide into October.
The only way that might change is if gold were to close above $1,404.50 at the end of the month and, so far, gold can’t even get through the first major level of resistance at $1,368.
What to do if you’re heavily long gold, silver or miners? If it were me, I’d take my profits. If you’re reluctant to do so, for whatever reason, at least hedge your holdings with inverse ETFs such as DUST for mining shares … GLL for gold and ZSL for silver.
By the way, the dollar is about to explode to the upside, which will put further downside on the precious metals.
Stay safe and best wishes,
P.S. I want to send you a complimentary issue of my flagship newsletter Real Wealth Report … just click here to download now!
Disclosure: The above article has been edited ([ ]) and abridged (…) by the editorial team at munKNEE.com (Your Key to Making Money!) to provide a fast and easy read.
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