The Gold Holder's Record

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#1 Sun, Oct 16, 2011 - 1:08pm
Joined: Oct 13, 2011

The Gold Holder's Record

I was running a chart to see how any 90 "calendar" day (about 64 trading days) period has affected the POG. Many LT holders are often told how it is foolish to be so and how not selling before downturns is suicide.

Here is the truth. With the exception of a handful of days, even including the 2008 massacre, the POG had almost never gone and remained negative for any 90 day period. Sure it had a few days here and there and some lasted as long as a week or slightly more, but none were protracted or deep and all were considerably less deep than the corresponding rises had been, In other words there were many 90 day periods of large double digit gains (including above 35% in 2008-2009) and only one short lived period (2008) where there were declines better than 8% and the deepest was only about 22%. 

Since the last time the 91 day T-Bill paid any real interest was several years ago, than to hold gold instead as store of "dry powder" or cash or wealth or... has been a better place to park one's money. Sure you may have caught one of the very, very few periods where the 90 day period saw a slight decline in POG but you were not forced to redeem at 91 days for better or worse and usually within two or three extra days the POG was back into a 5% or so rise. That is 5% in 90 days. Not 5% annually divided into 90 days as a T-bill would have been even when they paid 5% many years ago. Nope, a full 5% (or 3% or 7% or..?) in just 90 days hold.

So fear not the hold of gold. 

Edited by: couplover on Nov 8, 2014 - 5:31am
Tue, Nov 22, 2011 - 9:07pm
Joined: Aug 14, 2011

Also note...

That since 2008, Au has never fallen back below its 150dma, except for a few hours in overnight Asian trading back in September. This has proven to be an excellent resistant and is the signal I now used to purchase Au or not. Take a look.

Once you wake up, it's hard to go back to sheep!