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Tuesday, December 13, 2011

Am I worried about dipping gold price?

These days, I must look like stupid! Whenever there is a big dip, I buy a little bit gold or silver. But they keep dipping. Today gold dropped to low $1600s. Each time my wife sees the gold price, she asks me why I buy gold at higher price; why not wait and buy at lower prices. Can I or anyone really know when is the best time to buy without looking at the rearview mirror? Obviously no one can! Even not the greatest investor, Warren Buffett!! If you always look back to pinpoint the best time and price, yes, everyone can be the trading & investment genius. But obviously majority of people lose money in the markets. No one has a crystal ball ahead of time, period.

Nowadays remind me of the time when I first bough gold coins about 5-6 years ago, when the gold price was at about $700-800 range. As soon as I bought the coins, gold prices were up and down but mostly were lower than the strike price for my gold coins. I was certainly upset and kicked myself why I did not wait for a lower price. Then looking back after a few years, I'm kicking myself again now why I did not buy all the gold coins I wanted at that time. Lesson? For a secular bull market like gold and silver, simply buy them at the best price you can at that time and stick to them. Don't look back and care about short term day to day price volatility. Gold and silver are just money for me. Just like I don't worry the exchange rate for my dollars, I don't care of the daily price of gold and silver. I only check their price because I want to buy more when they dip. Can gold and silver go further down in their price? Absolutely! And I would be happy to see that because I will buy more.

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