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Old 05-16-2013 | 09:10 AM
  #130320  
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Originally Posted by Columbia
Anyone get suckered into the recent gold fever or call selling hype the past few years?
Not sure exactly what youre asking, but when something is on an epic bull run over a sustained period of time there will always be dips. This most recent one was largely because foreign central banks did a lot of dumping of their real wealth to help kick their debt can down the road a bit by selling off massive gold holdings. Something the "gold bugs" have been very openly predicting would happen anyway, thus the periodic and swift price drops.

Higher highs and higher lows.

Exclude the blip in the early 80's, when we decided to mask the problem with exploding debt under the Keynesian fantasy of permanent reserve currency monetizers with no end or challenge, and its easy to see where the trend is going.



Especially when there is massive resistance to slight decreases in the rate of acceleration into the debt crisis we will have to endure.



You won't find one filthy rich person in the world that doesn't have 5-10% in metals at any given time, yet the "small fry" investor is looked down by the paper money/day trader/"Snyder Method" crowd for taking pretty much any position. Diverse investors who dollar cost average into long metals positions, particularly if they emply even a nominal amount of arbitrage by buying the dips, have done and will continue to do just fine with their metals position.

That said, there probably are a few folks who made big moves into the peaks and sold in a panic at the dips. But that can be said for every single stock and asset class in existence. People are selling APPL today who bought at 700+ and vice versa. Diversification is mandatory, and no investor is truly diverse without some level of a position in metals. The rich, banks and nations all do it without question, yet its somewhat taboo for the little guy who for some reason is expected to be 100% in fiat otherwise he's a fool when the inevitable dips happen.