Gold "Flash Crash" And Why I'm Buying More
Warren Buffet once advised to "Be Fearful When Others Are Greedy and Greedy When Others Are Fearful". I've got to agree with him on that one.
A look at the kitco live chart right now shows what's being described as a "flash crash" in gold
Zerohedge is attributing it at least partly to "the €17 billion bailout of the two Veneto banks in Italy, the biggest taxpayer funded bank rescue in modern Italian history" here.
The fact remains that these derivate based systems are divorced from the supply and demand dynamics of a functional market and despite holding metal, I relish any chance to buy more at a discount and in doing so, reduce the total per unit cost.
Silver is right now being dragged along for the ride as the below kitco chart demonstrates
It's timely that just an hour ago, Jeff Clark
(Senior Precious Metals Analyst at GoldSilver.com) emailed an article entitled "This Dip in Silver Was Completely Predictable—and Is About to End". In it he states
It’s rare when you can look at the historical behavior of an asset and pinpoint a reliable trend with its price. If you find one, you can potentially put the odds of “buying low” in your favor.Well, that’s exactly what we have with silver right now.
As you’re about to see, the silver price has historically fallen pretty hard every June.
Why? It probably has something to do with it being the official beginning of summer. Vacations abound, and less attention is paid to markets in general. It’s what led to the adage, “sell in May and go away.”
The fact is that the reasons are quite irrelevant because regular accumulation should be a feature of any portfolio and should be occurring at all times...
Now excuse me while I open up another browser and buy some more!
I agree 100% that silver is at an all time low to buy and that is because the dollar is being dumped and people are waking up to the manipulators, and thieves that have been stealing you wealth away.
Thanks @buster544. I read I think on zerohedge that the majority of Americans identify gold as the best long term asset to hold despite under 10% actually holding any. Seems the recognition of reality is slow to translate into action. We here however dont suffer from that!
Really great post. Love the opening statement from Warren Buffet. He has a brilliant mind, and a great philosopher. I do not see him as a greedy guy. He just makes good sense. Thanks for sharing.
He is insider and trader of America.
Great comment @gardengirlcanada glad you enjoyed the post!
This is a great post. I hope you show us what you've added to the stack?
I jus might @hgmsilvergold. Thanks for the good feedback!
Bought the morning after the flash crash. Money was on sale!
Me too! Feels good doesn't it!