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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: robnhood who wrote (8630)	3/21/1998 9:13:00 AM
From: Gabriela Neri	Respond to of 116762

Yeah, yeah, yeah. Its all a question of price. Rule #1-Buy cheap, when they're throwing away things. Rule#2-Make sure that you do not leverage so that timing is not a factor in your demise when buying contrarian investments. Rule#3-make sure company in question has sufficient liquidity to hang in there and not disappear. Rule#4-sit back, take your shoes off, and relax. Let time and sentiment change. You are no longer in control. Good things always happen eventually when the buy decision is done correctly. Making 100 to 200 to 300 percent or more can be a harrowing experience and even if it takes a few years, its well worth it. I have no idea what will change the sentiment. Just like I have no idea what will change the sentiment in the great big bull market. But, I do know it will change. Have no clue when, but dont care. There is no free lunch, and if you can buy something cheap, then the trade off is its out of favour or hurting for a reason. Trick is to do,the homework and weed out the unrecoverable situations. Its an investment mentality that is not for the majority. Majority are trend followers and make money through the powerful trend . However, few of them will have a clue as to when to bail. Take gold-its historically cheap, nobody wants it, central banks selling it and furthermore talking it down. Now, its one thing to sell an asset, but to talk it down while youre selling is bordering on the absurd. Portugal talks it down while Belgium is selling. Belgium sells almost as much gold in one shot as sold by all central banks in 97 and gold doesnt even come near its January lows. Maybe it will retest maye not. I dont give a hoot. Its cheap by any standard of measuring it(historically, cost of production, etc). And it may get cheaper, but risk reward is low and sentiment is extremely negative-a perfect contrarian place to wager a speculation. But not leveraged. Strictly with cash so as to eliminate time as a weapon against me. If Im wrong, I'll wait. I'll get bailed out later with less of a return or more of a return than originally anticipated . But, because its cheap, very difficult to lose money. Take silver last year when it got down to the low 4 dollar range. Nobody wanted it-photography was going digital-no need for its existance. And then, within 12 months or less, it almost doubled at one point. Ha Ha Ha. What were you saying about silver then? That it was a piece of garbage and you didnt know when sentiment would change. No balls, no glory. Follow the crowd , subordinate your intellectual expertise to that of the masses, and have fun. Life is too short for that. I'd rather be contrarian, but wise about it, have my intellectual independance, be highly profitable, and avoid the crowds. But, it is not easy. We are in a market where it pays to buy high. That will change, and I dont care when. I know it will. There is no free lunch in life.