Finance > Stocks Mutual Funds > Gold Fever
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Article rating : 0.00, 0 votes. Author : Al Thomas
Right now there doesn't seem to be any "gold fever". Very few are out looking to strike it rich in this sector.
Way back when at Sutter's Mill in California the discovery of gold was accidental. One of Sutter's employees picked up a shiny stone out of the stream and suddenly the fever caught everyone. Gold fever is one of the most catching and dangerous "diseases" that has afflicted man since the beginning of time. Many have died or gone broke chasing this elusive element. We are about to see it happen again. The first ones to catch it usually do very well, but as the fever spreads to the general population the affliction mutates to fear of not getting their share and ends with disaster.
Those who understand the cycle of fear, yes, that is what it is, do manage to control their emotions and do very well. At first the logical, thinking people realize that everything is in place for a long term bull market so they mine (buy) early. As they continue to become richer and richer others see their success and start staking claims. Even these later comers do well as the hoard descends upon the gold fields and the early birds are happy to accommodate them by selling them part or all of their claims (stocks and bullion).
The early birds do not become emotional about their good fortune and do
not become so attached to their mines that they refuse to sell. They have the good sense to realize that if they hold much longer there will be too many chasing this good thing so they sell. Every rich man in history will tell you that the secret of success is knowing when to sell.
Those who bought the original tulip bulbs from Holland and land in the South Pacific and saw the prices begin to erode and sold were the ones who remained rich. From 1982 to 2000 dot.com stocks made everyone think he was a financial genius. Those who had no exit strategy were buried in the avalanche of cascading prices for the next 3 years. It seems that many have not yet learned their lesson and are buying more of the same junk with the hope that it will go back up to the old high prices so they can get out "even".
Those who came late to the gold rush went home with little or nothing and most lost money. If you want to participate in the coming gold bonanza you must get started now.
Al Thomas' book, "If It Doesn't Go Up, Don't Buy
It!" has helped thousands of people make money
and keep their profits with his simple 2-step
method. Read the first chapter at
http://www.mutualfundmagic.com
and discover why he's the man that Wall Street
does not want you to know.
Copyright 2005
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