I like gold, but after seeing its high volatility, I am getting more nervous about buying gold. How safe is my money when its value can fluctuate by 20% within a few weeks? That certainly does NOT inspire confidence.
PS, I thought you were waiting impatiently for a big drop in gold so you could buy it cheaper, but now you aren’t buying because there was a big drop?
Gold isn’t for wimps. It is highly manipulated by governments precisely because they want to scare people into sticking with a “safe” asset: namely, their currencies, which they can print at will.
So why buy gold if it is manipulated? For the same reason that governments don’t want you to buy it: they can’t print it. Thus, over the long term it will go up in price in all fiat currencies. The more they manipulate the price lower, the faster it is purchased by strong hands who can’t be scared off. Eventually, there won’t be any more physical gold available to be used in the manipulation, and then the price will go sky-high.
In other words, sudden drops are a gift to the strong buyer. But DON’T USE MARGIN OR ANY OTHER KIND OF DEBT. If you do, you will get killed by these shakeouts. If you don’t, they can’t shake you out.
