The Mini Correction

Darn it!! I should have sold a couple of weeks ago after all. The price was then £1,125 per ounce and all of a sudden the big drop. I think it took 2 days to hit £1,032 and then suddenly all this talk about, 'Cash is King'.  I'm not a market analyst and don't pretend to be one but if I wanted to take advantage of reports and make some money and it involved billions of dollars. I would try and start a rumour that cash was making a comeback too. Just like a Rocky movie you always want to chant for the underdog and see him win. Unfortunately it didn't look the the markets were taking the bait. On the other hand the gold bear did and passed the baton to the bull who is picking up pace as we speak.

Word got out that the Greece bailout might not work after all, now there's a surprise. The talk of QE 3 raised it's head again and the Indian festival period is upon us. This little correction only spurred people to buy back in because of the new low price. All in all the mini correction was like a perfect storm and has started a frenzy to buy gold at this new price.

Well, I did sell, not at the top granted but on the way down. I protected what we had and just watched quietly in the corner for the turn around. I always knew that no matter what happened I wanted back in before the Indian festivals. The rally has started and on it's way up. The predictions for gold is above $2500 by March. How they come to that figure with so much happening in the world and so many things that haven't happened is beyond me? I guess that is why I'm not a trader.

My only theory behind this whole investment thing is that the banks aren't helping me and never will. If we want to protect our savings and our future then you just have to plan for it and do something about it.

It's been a while and a lot of things have changed. I bought gold around the £830 per ounce and for those of you who have been following the ebb and flow of gold will know that it wasn't a bad investment, even if I say so myself. All the pundits were correct in predicting 2000 dollars an ounce, even if it was for a short time. 

There were so many crappy things happening in the world that everything seemed to effect the markets and sent everyone running to the gold hills for safety. Not only that but China and India have increased their buying of gold.

I was waiting for the yearly correction that happens around the summer. I was hoping that there was going to be a big sell off which would mean the opportunity to buy more at the cheaper end. That correction never happened. I was looking at yearly records and for the past 10 years there has always been a summer lull. not this time. Is this a good sign, who knows? I wish I could tell you how to analyze the market to come up with an answers of why this is happening. My guess is America and Mr Bernanke spending a lot more than his country can afford and the printing of a shed load of money to pay the debts. We had 2 rounds of QE and the talk of QE3 kept everyone on tender hooks of what was going to happen. The employment and high street spending records were ever so slighty better than expected but still way off showing signs of any kind of recovery. The US credit rating being downgraded. Also the fact that China and India are more than prepared to buy as much gold as they can and who can forget about the Euro problems? All this is making the world a very unpredictable place.

Now, do I sell? Gold is £1,125 live price right now. It has already dropped from £1,161 in less than a 2 weeks.  I did do one transaction that I hope will pay off and I sold a few thousands worth at the high price and exchanged for silver. Silver had dropped pretty low and let's face it, if gold go sky high than silver will follow close enough behind to make a bit of profit. I also heard that china was looking to buy silver to push forward on their solar panel scheme. If that is true and solar panels end up being a must have item in china then that could be huge profit? Once again, just speculation. I'll let you know how it goes.

I only hope I am close to the answers and not totally off the mark. I really do wish I was that kind of a person to analyze and do spread sheets or research but quite frankly I have too many interesting things to do and that stuff just doesn't float the old boat. 

I think I'll hold the gold and see what happens.