Back on February 6th, a posting of mine said big move in gold coming. I noted my heart said up but my brain thought otherwise. I said the move shall be extensive and also a shakeout to the downside may be needed before any move above $1,700 then $1,800 could occur. It was suggested to refrain from any new gold purchases until we either broke above $1, 700 or tested the lower range of a multi-year trading range between $1,500 – $1,550.

The brain was right but the heart loss. And with that loss the nasty emails intensify while the junior resource portfolio melts away. I lost more money on paper and actual losses in the last 18 months then I ever possess in my life up until two years ago. Sadly, I must be one of the very few on the professional side as hardly a mention of being on the wrong side can be found among newsletter writers, analysts and money managers. Such is life.

With bearish momentum reaching avalanche proportions, it appears gold will need to test the low end of the 18-month trading range (Point A) before any meaningful work can be done to turn it into a triple bottom. There will be little if any support for it in the media and among professionals (except by those who sell physical gold) and its always far more fashionable to “pan” it than support it.

It would come as no surprise that a new, all-time high on the DJIA coincides with a bottom in gold (but the pain between now and then won’t go away). I still am scratching my head on how a market that rises nearly 500% over a decade gets so little interest but when it declines sharply as it done twice already in a trading range, the convoy of people calling its demise gets longer and longer. Gold is without a doubt the Rodney Dangerfield of investments.

This entry was posted on February 20, 2013 at 7:29 AM. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.

Posted in Canadian Stocks Exploration Shares Gold Mining Shares Precious Metals by Peter Grandich