My Beliefs

Archive for December, 2011

Where prices are on the rise, every pundit and expert on the planet stands out and has the floor. And what they predict for the next few weeks is almost always based on what has happened in recent weeks. That is always an easy way to make predictions, and it certainly resonates with their audience, who fervently want to believe that gold prices will continue to rise indefinitely. As the hype continues, these experts will congratulate themselves because they are incredibly smart. And they seem smart – until the moment that buy gold correct themselves and fall.

None of the experts predict the correction. Why gold price stop rising and correct itself? Simply put, it’s because professional investors looking for places for their money. Right now, with huge debt problems in the U.S. and Europe, which are often better places safer places. Or, more courageous investors, those places are at high risk with high potential return – such as short circuits European debt crisis. gold bullion rose this year on the back of uncertainty. It was a safe place to put your money. But it is not the only safe place. It is not where you expect the best returns. And gold bugs forget that sometimes.