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

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.