Rare Coin Investor

August 24, 2011 -Well you know just watching the Elite Business “entertainment” media try and spook serious precious metal investors over today’s volatility. Has me laughing so hard it’s almost painful! Yes the NY Business TV media are trying so hard to scare the public and for the last almost 10 years then entire investment community had declared GOLD dead. The Big Wall Street Media, CNBC, FOX, Bloomberg, WSJ, FORBES, NY Times, you name it refused to acknowledge the at GOLD was locked into a “MEGA TREND” technical BULL trend.For those of you either to young to know or remember…the run up to the 1980 high of $873 in Jan of 1980 the market multiple of GOLD had exploded by over 8 Times in the space from the August 1976 low of $101.5. Now when you have lived through several major historical investing events and traded both the up and down swings. You acquire a different perspective than what the “babble” heads reading teleprompter’s in the disconnected television studio located in “fantasy land” of places like New York.After the 1980 decline the media who had been duped into lie that precious metals we dead totally ignored the factual reality of the next 11 years. As the GOLD market traded between $514 and $281 trading range! This again was a source of large trading profits for anyone willing to look for good risk reward entry points. The Gold market created a massive source of consolidation energy that ended in 1993.In early 2006 the “Pin Head’s” of the investment media was so busy trying to help Wall Street suck the public into the largest Bear Trap in the history of modern investing ! While acting as the paid stooges of the investment industry..they tried to beat down and repeatedly bringing on supposed experts to tell the public over and over had GOLD could never rally and was over priced. As Gold broke out through $600 per ounce for the first time, post the 1980 levels. How dangerous investing in GOLD was as an investment. In May 2006 as the market staged a technically perfect reversal from a $755 high to create the consolidating pattern, and last bottom below $600. All of these factual patterns we again touted again by the Business Media as flukes. Not to be taken as real opportunities for “real investors” Again Gold was over valued and dead!

All during 2007 the Big TV Business and Print Media waged a war against GOLD and precious metals as choice for investing.  When the 2007 Bear Trap closed and began the “first leg” down of the start of the “great generational Bear market”.

The Business media while stocks were in “free fall”…GOLD was soaring and trading higher every week closing the year 2007 at $834.90. While making a 2007 high of $843.20 during December of 2007. Going from a low of 607 to 834 at year end. Needless to say the Media & Wall Street were again working over time to try and tell the public that precious metals were not a real investment…that stocks would rebound soon.

In early March of 2008 GOLD traded back over the 1980 high with ease. But again all of the economic programs would kill any more possible upside in Gold, Silver or other precious metals for several years…if ever. The 2008 year was a another key consolidation pattern with lost of volatility that created very large trading profits for those who were serious. In October 2008 the Gold market made a final low at $ 681 before relaunching a rally to blow past the $1000 level for the last time, before testing 1200 resistance level December of 2009. Reaching a high of $1226.40 and closing 2009 at closing on a year level for the first time ever in history over $1000 level. That close was $1095.20!

Now all during 2009 again ALL of the broadcast TV business shows who had been on the wrong side of history.  Refused to allow the public any perspective in comparison of precious metals again out performing stock indexes again and again… are you seeing a pattern. Metals have been kicking Wall Streets ass big time for several years and the media is trying as hard as possible to thwart or scare the public away from GOLD.

Why? If your making money in GOLD then you do not need to by bad stocks or bad mutual funds. Now every time GOLD has move through a new price level the media is always telling the public…oh this is the end. Gold is over priced, Gold does not pay any dividends…neither do the vast majority of stocks!  Also look at the yields on T-bills or your passbook saving account. Gold actually is currency neutral and also reflects the true rate of inflation! So almost every day over the last 6 years…the media and Wall Street is praying for GOLD to crash.  It is not going to happen.

The US Dollar is in a full blown melt down. Even following the Bernanke Doctrine of “printing money” to create inflation as part of the “Big Brother” socialist stimulus program will never work! So.. as GOLD has moved higher and now has tested the 1850-1925 resistance level the media keeps the same old scare tactics. This week as the market has tested the resistance levels, this volatility is not a big deal. Also I have warned anyone who is paying attention or reading my twitter account, to always have “trailing stops” and SELL covered CALLS to help book any profits built from buying at all the lower levels. Or as protection for late and high price buyers from volatility swings like today.

All of what we see today is part of the forecast volatility cycle put into print here at my “Examiner.com” work. The reality is as we all know that commodities exchanges have raised margins trying to protect brokerage firms that have been short GOLD and Silver all the way up. But the reality is that 2011 is seeing an almost endless buying of Tons of Gold at a rate greater than anytime in history! Why? Because these governments know that any country that does not protect it’s currency with Gold reserves will see destruction like the US Dollar succumbing to now! I published a story on central bank GOLD buying just a couple of week ago.

Now for all the whiners who kept saying they could not BUY GOLD because the price was to high..should now be able to use the large volatility and consolidation process to get on board. But to all of our valued clients who started buying back in 2006, 2007 and the bid dip in late 2008. I have over and over advised to use covered CALL or Short Futures against physical longs of GOLD as a way hold onto low priced gold. Same advice for Silver also. More important is that this consolidation of Gold is moving back into the army of international buyers seeking to increase physical holdings of GOLD.

The support under the market is massive the consolidation range could be very wide. The harder the volatility pattern the better opportunity for buying in a over sold situation.

A large major buy window between 1450 to 1550 is a large opportunity. In the short term basis 1575 to 1525 is another near term buying window. While Wall Street and the media who have been wrong on the metals markets for over the last 10 years, again wants to pretend they know anything about the gold market. We are still in the early stages of a very long term bull market. All that is happening is the public is dumping weak high priced positions that allows the “exchange members” to get long and the take the market up higher beyond the 2000 level soon.

The entire game is people taking profits from very recent BUY positions that appear to date back to May of this year and the 1575 to 1475 zone. All investors need to only trade with “Stop Loss” orders and hedge any physical purchases of gold or silver, by using “Covered Calls” and Selling Futures contracts. Us “trailing stops” under your high level priced Longs from the May 2011 entry points.

The US Dollar will keep losing the currency wars due to failing federal reserve and white house economic policy.  Central banks are ready to buy hundreds of tons more of GOLD this year…if it is offered. Trade or Die Baby.