Hold On (to those gold coins and bars)!



When the world ain't treatin' you good, you got to hold on…

When everybody's lookin' at you funny, you got to hold on…

You got to hold on…

"Hold On" by Alabama Shakes


Strong Hands

I want to discuss one more concept, the concept of strong hands going into Freegold.

[...]

Each time the price swings up and down like this the "gold" traders trade their way in and out of their favorite paper gold positions. But the physical side is slowly working its way into stronger and stronger hands with each swing. Strong hands buy the dips while weak hands are selling in a panic.

[...]

This could potentially be the final shakeout of weak physical hands, because there will be plenty of strong hands catching that physical even though physical buying won't stop the price from falling. Unfortunately for a few long-time gold bugs, the lack of a fundamental and foundational understanding of a much higher value could see them liquidating at the worst possible time in all of history. And that would truly be a shame. At least I have given fair warning. I'm not predicting that this is the way it will play out. Only that it could. And being aware of this possibility has value if it gives you strong hands at a key point in time. [1]

That's an excerpt from an old post, about a year and a half ago, after gold had fallen about $250 during the preceding four months. Today it has fallen about $325 in four months. My perspective reveals that the "price" of gold may fall quite low just prior to a very quick revaluation upward. But that is just the temporary price that's falling, not the true value of physical gold.

All of my savings are in physical gold coins and bars, and yet I have been anticipating an eventual price plunge to some really low number at least since my post The Shoeshine Boy back in 2010. And now, ever since this past December, I have been discussing the possibility of a plunge in the price of gold this year, with more frequency than in previous years, and how it fits within my view. I even dubbed 2013 "The Year of the Window" on New Year's Day, referring to the possibility that this is the year it happens. So why would I keep all of my savings in physical gold at the same time as I expected an eventual collapse in the price of gold? Interesting question, isn't it? Here's how I illustrated my view in that 2010 post:

http://1.bp.blogspot.com/_cvdgPlEKW9...ture_chart.jpg


more at: http://fofoa.blogspot.com/2013/05/ho...l#comment-form

Mamboni comments: check out the comments section - great stuff there.

Now here's a remarkable observation, anecdotal no doubt. But FOFOA's blog on the esoteric side of goldbug sites and never had a large following --- until now! Check out the world map of visitors tonite - there are far more here than at all the other metals sites. This suggests to me that a lot of people have discovered gold in the last couple of years, alot of new goldbugs - bullish!

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