What's going on in the Gold Sector??
From USD 1350-1170. Prices have crashed.
A healthy correction turned out to be a full blown disaster.
It is getting extremely uncomfortable to hold on to these gold stocks.
How you gentlemen handling this !!!
I have seen this at least 3-4 times since 2013......and it has recovered every time.
Yet every time, while this onslaught is happening....the mind is scared to death.
It feels like it will never end....and they will continue going down forever.
Our emotions are controlled by the price action.
1 Price up......we feel energetic..excited...goes up more...euphoric.
We get greedy/ambitious thinking it should/will go up even more.
We don't sell. (Let the winners run)
2 Price go down...we feel depressed...stress out...goes down more....fear & panic takes over.
At this stage we are running like a headless chook....scared of loosing everything.
We sell out.(Cut the losers)
The way to make money would be to buy at stage 2 and sell at stage 1.
Anyone can tell that...but to apply that in the moment is a totally different story.
I am still learning.....L Plate holder.
Times like this I wish I held no gold stocks.
Unfortunately I have so much....so many... they all are giving me headaches.
Yes, I also hold SLR now.
My understanding was and is that higher rates are bullish for gold and bearish for the currency.
Higher rates create inflation. Gold does well in inflationary period.
It looked that way from early 2016 up until April 2018.
USD was going down and gold was going up.
Now US data are showing rise of inflation.
Something changed when gold broke below USD 1300.
Since then it has been downhill for gold and uphill for the US dollar.
What do you gentlemen think about this situation, as this is the most important factor determining the price of my miners right now.
Or
All this is a flush out mechanism/market cleansing for the next run higher.
Please share your wisdom.
Thanks
SLR Price at posting:
51.0¢ Sentiment: Hold Disclosure: Held
