Riding The Gravy Train

Beating the market is fun and profitable. This is how we do it.

Thursday, April 18, 2013

The Psychology Of Gold And Silver Investing (Seven Stages Of Grief)

Having enjoyed this bit of fact and the mention of the stages of grief therein - Academic Study From Last Year Shows Gold's Fair Value is $800 -  today we update our graphic which shows where gold and silver bulls fall on the scale of the "Seven Stages Of Grief".

First a review of December 2011 and May 2012:

Now here's how it looks in April of 2013:


We note with interest and confirmation that the tone of the (hate) mail we receive from precious metals bulls has mirrored these stages all along the way.

Another way to look at it, from this recent post "A Normal Week In Gold, Silver and Bitcoin":

As the graphic above shows, the mean tends to be exceeded on the down side when a bubble pops, so if $800 is indeed fair value for gold then it'd be perfectly normal to see prices as low as $600 before it's all said and done.  No market manipulation or conspiracy required, just history repeating.

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