The gold rush is almost over. Amidst the noise of the markets we have articles like this one which try to straddle the fence with the oft repeated mantra that investors should 'diversify' their portfolios to reduce risk. However, they still advise investing at least something in gold. The possibility that we are about to enter a time of deflation where all investment classes could decrease in value has never been entertained by those advocating a 'diversified' portfolio. Sure you'll be diversified, you'll have a diversity of losses.
Then there is a common outright bullish stance that now is the time to enter the gold market because prices will go higher and could go as high as $6,300 to $9,000 an ounce. This extreme bullish stance is typical of a speculative market high. Many small time investors are entering the market fearful of being left out, we even have internet sales pages aimed at everyday folk with a few dollars to spare urging them to invest in gold NOW!
It is at just this point that traditionally a high is in place and they all get burnt.
If you use the Elliott Wave Principle to analyze markets you have an objective tool which will tell you exactly what any investment class is about to do. What goes up must come down again at some stage, and Elliott Wave helps you pick turning points.
Our stance at The Deflation Times is simple: Cash is King.
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