The lonely soul in the gold/silver market

I feel I like the only soul wandering in the gold/silver market now! Gold and silver got crashed yesterday and almost everyone sold in panic en masse. Gold dropped like a stone by over $80 in a single day, which has not happened since the crash in 2008. A moment of capitulation, definitely!

This vividly brought me back to the time in 2008 when gold crashed from $1000 to below $700 within a few months. The feeling was exactly the same: desperate, painful, hopeless. The whole world was telling you the bull run for gold had ended and no hope to continue the ride with gold or silver. I remembered clearly that I was sitting anxiously in my small room wondering what I should do with my rather big positions that were bleeding. After internal fighting for several days, I could not continue with the anxiety and finally gave up and sold my positions to cut loss. Looking back, that was exactly the time of the bottom for gold. In just a few months afterwards, gold took off again swiftly and the gold stocks I sold doubled very soon.

In the following years, I studied a lot and became much more knowledgeable about the fundamentals why gold and silver have to go up in the reckless world as we are in now. I have since made a firm resolution that I will not sell my gold/silver positions simply because there is panic selling or everyone else is dumping. Unless the fundamentals to support the gold/silver bull change, i.e. the madness of world-wide printing of fiat money is ended; the race of currency debasing has stopped; and the negative real interest rates have gone, I will continue to hold gold/silver positions and will even buy more when their prices come down. This is exactly what I'm doing now in the past few months.

After all, one has to buy low and sell high to make any money. If you like something, you have to buy it when it is on sale with lower price. But this is easy said than done in investment. People are usually just doing the opposite: buy high and sell low, a recipe of losing money.

I have no crystal ball to know if this is exactly the bottom or whether gold/silver will continue to slide down. One thing I'm sure about is that the lower their prices go, the less risk there is to buy them and the bigger profit one will eventually get. Gold and silver will come back and go up much higher. It is not if but when!