WARNING: Apologies in advance for the ramblings...
Thanks for the post Renovator, I think this type of movement is sobering for everyone, kind of like the mug of black coffee the morning after a hard night on the sauce... it starts people thinking clearly again, looking at the fundamentals, re-analysing their strategy and re-evaluating their own drivers for being in the game in the first place. I think it also provides for a valuable learning experience, for me, I think even with solid fundamentals driving the rise, there are always forces acting in the shadows that are stronger than those we see on the surface, and these forces have the ability to push the market any way it feels, you can't predict it (except if your Stella!) and you certainly cant control it. It also confirms that nothing can rise at such a sustained rate for such a reletively long period of time without a comparative correction, you always have to remember that this is normal, especially as though all pricing indicators are fundamentally based on a system that is much more directly affected by consumer sentiment and fear than rationale and sound thinking.
It will be interesting though as to whether either the $50USD or the 1kg:1ozt GSR will be a psychological barrier the next time round... will people decide to take profits or swap to a more stable option in the future at these points just becuase of this movement or will there be other factors involved? after all, fear drives choices... and this experience has to have instilled fear in the minds of many.
My fear is that people will take this correction as a sign that the "run" is over, that the fundamentals of precious metals are in fact flawed and that the global economy (US/EU/at all) are not in such a bad shape after all and decide to just jump back into the ponzi pool... If this occurs and we see a turn away from the fundamentals, then THEY have won and we might as well climb back under our wooly sheep skins and start bleeting with the rest of them
Thanks for the post Renovator, I think this type of movement is sobering for everyone, kind of like the mug of black coffee the morning after a hard night on the sauce... it starts people thinking clearly again, looking at the fundamentals, re-analysing their strategy and re-evaluating their own drivers for being in the game in the first place. I think it also provides for a valuable learning experience, for me, I think even with solid fundamentals driving the rise, there are always forces acting in the shadows that are stronger than those we see on the surface, and these forces have the ability to push the market any way it feels, you can't predict it (except if your Stella!) and you certainly cant control it. It also confirms that nothing can rise at such a sustained rate for such a reletively long period of time without a comparative correction, you always have to remember that this is normal, especially as though all pricing indicators are fundamentally based on a system that is much more directly affected by consumer sentiment and fear than rationale and sound thinking.
It will be interesting though as to whether either the $50USD or the 1kg:1ozt GSR will be a psychological barrier the next time round... will people decide to take profits or swap to a more stable option in the future at these points just becuase of this movement or will there be other factors involved? after all, fear drives choices... and this experience has to have instilled fear in the minds of many.
My fear is that people will take this correction as a sign that the "run" is over, that the fundamentals of precious metals are in fact flawed and that the global economy (US/EU/at all) are not in such a bad shape after all and decide to just jump back into the ponzi pool... If this occurs and we see a turn away from the fundamentals, then THEY have won and we might as well climb back under our wooly sheep skins and start bleeting with the rest of them
. Bought back some Silver at AUD$40, which was now apparently too early. Live and you learn, good attitude to have.
