I’m in Vancouver for a few days. While I’m here, I need to meet with Gold Bugs and ski Whistler. That’s what you do around here right? I’m good with both.
It’s hard to have a serious conversation with the true yellow metal cult followers. These clowns are bullish at all times and have been expecting Gold to make a huge move every day since their last big move that ended in 2011. “This is it”, I’ve been hearing for years. But Nope. Not only have they not made any money, but the opportunity cost (what else could they have done with that cash) is through the roof. It’s been painful to watch them.
For our purposes, open minded investors, in other words, we don’t care if Gold doubles or goes to zero. We could not care less. Our jobs aren’t dependent on them. Our “investment strategy” is not tied to rising prices for precious metals and since we don’t have “a narrative”, we don’t need to make things up to justify our existence.
We want to be buying things that are going up and selling things going down. It may sound oversimplified, but that’s just the truth. Securities trend. There is a much higher likelihood for a trend to continue than for it to reverse course and turn around. “An object in motion stays in motion”, I believe is how Mr. Newton put it. [Read more…]