I’m a Gold Geek NOT a Gold Bug – The truth about investing in precious metals

in #gold5 years ago (edited)

One thing I do agree with gold bugs on is that gold, silver and mining stocks will experience unprecedented growth the next few years’ even decades. The problem with most gold bugs is many of them were calling for this growth the last 4-5 years while the value of gold dropped by nearly 50%, decimating many people’s accounts.

When the price of gold goes down they scream “manipulation” but you’ll never hear the same screams if gold shoots up in price. The fact of the matter is gold and silver go up and down in value just like any other stock or commodity depending on market sentiment. Objective, honest, unemotional analysis is critical to making sure you are on the right side of these moves.  

My income today is primarily from investing and trading in gold/silver mining stocks, it’s been a good year for me so far but it wasn’t always like this. I started investing in mining stocks 2 years ago, reading dozens of gold bug articles everyday promising amazing returns. I got burnt badly and started looking at better ways to analyse this market. It’s not for the faint hearted though, stock prices will often move 10% up or down on a daily basis. 

Technical analysis of stock charts is the backbone of my analysis, looking for repeatable patterns which help predict probabilities of a potential move. But I also like fundamental analysis or a story if you will to back up my thesis. With gold the best story for me is governments all over the globe devaluing their currency in a race to the bottom, purchasing power being inflated away, zero or negative interest rates driving people to better options than “to big to fail” banks etc.

Anyway that’s enough for now, I will go into further detail in future posts. I hope to save many of you from repeating the same mistakes I had to while you find your path to financial freedom.

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This is a great article for all new Precious Metal investors. Thanks for sharing. I am happy to share this on Twitter✔ for my followers to read. Following and looking forward to reading more of your posts. Cheers. Stephen

Thanks Stephen really appreciate your endorsement :)

For me gold and Silver is not an investment. I don't want to buy today, check prices everyday, and if it goes up - sell it to earn money fast. If i have some extra money i prefer to buy(physical gold/silver) and forget about it. For me it is a value, that i can freeze and use in bad times.

Fair call, I'm a big fan of physical but mining stocks will provide exponential returns over the physical. I like to have both and the stocks are for long term hold years maybe decades

Hi! How about gold mining stocks in the Philippines where the present Govt dislike gold mining?Obviously,most mining companies disregard the communities living in the affected land and practices arent really friendly to the environment.
Gold mining stocks arent being advised to invest on but looking at the Western economies, it might be a good idea to invest. This is from a newbie investor, like in months! Cheers!

I'd recommend staying away from any mining in unfavorable countries. Most of my stocks are Canadian based or in other stable jurisdictions. Personally I think they are setup for one more decent drop in the next 2 weeks and will take off again Sept 21/22 when the Fed says no rate hike

Thank you.Will leave it for the coming months and see how the volatility is by next year.

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