Agoracom: Small Cap Investment - Silverado Gold Mines - Gold Correction's Over - Back in the Pool

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fastfoot

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Gold Correction's Over - Back in the Pool - Bob Moriarty -Dec 20/07

posted on Dec 20, 2007 10:31AM

Correction's Over - Back in the Pool

Bob Moriarty
Archives
Dec 20, 2007

I have referred many many times to my favorite chart. It is the best measure of pure psychology that I know. Lots of people believe that putting lines on charts will tell you when to buy. But no one I know has gotten rich that way. And others want you to believe that all you have to do is do fundamental analysis. But at tops there are 10,000 perfectly valid reasons to buy and at bottoms there are 10,000 perfectly valid reasons to sell.

People buy because of greed and they sell because of fear. They should do it the other way around. The simple chart of the XAU over gold measures both greed and fear. Everyone is terrified of buying right now as shown by the chart below. That means it's time to buy... Correction's over... Back in the pool. Gold shares are going to go much higher and there have only been two better times to buy in the last three years. Those are good odds.