PATIENCE!

Some say that "patience is a virtue." Others talk of the "patience of a saint." But in the investment world and when you purchase gold coins, without patience you are literally doomed to failure. How many times have you heard the statement that "no market either goes straight up or straight down"? On one level it seems obvious. Unfortunately for most investors or those who buy gold bullion, this truism is quickly lost as they seem to demand that markets perform in the fashion that they anticipate, and in their preconceived time-frames. The truth is that no gold coin investment quote is static, and those that are buying gold coins or any other long term investment, such as buying silver coins should be well aware of this before they get in over their heads.

Perhaps this is due to their lack of sufficient market and gold bullion experience. The true seasoned gold bullion coins investor recognizes that during the greatest Bull Markets there are periods when the market experiences corrective phases. These times can last from a few weeks to several months when the market either essentially goes sideways or presents a devastating correction, that shake the nerves of even the market’s most ardent believers. If one lacks patience during such periods they are fated to exit the market at an early stage. And, it typically occurs at the worst possible time. This is normally when the market is near a low point, just prior to the next major up-leg, when the Bull Market is destined to again reassert itself and post new highs.

Knowledge, research, experience, confidence and a firm grasp of the truth are needed for successful investing when you buy gold bullion coins! Without these attributes an individual is at best doomed to limited profits in the investment field.

Knowledge, research and experience give an investor the ability to recognize timely entry and exit points within a market. Confidence in his beliefs allows one to act upon what he believes. This helps him maintain his positions during periods of adversity. A firm grasp and desire for the truth fosters the opportunity to deal with what is real, rather than what the investor hopes for or wishes. If you cultivate all of these important attributes you can have the proper tools for evaluating the various situations, and your proper responses, for any situation that arises in any marketplace.

Getting back to patience. Before an individual decides to enter a given market he must first ascertain to the best of his ability the long-term trend of that market. If he is not convinced that a Bull Market exists he should not acquire a long position! However, assuming the investor truly believes that a Bull Market is in progress he should steadfastly maintain his position, until proven otherwise. If he is correct, the upward tide of the bull will eventually take his investments to ever higher levels. However, if he invested without being certain that he has correctly positioned himself, the market will eventually cause him to exit his stockholdings. Then, when the Bull Market reasserts itself, he will blame his bad luck or poor fortune for what was truly a poor investment decision.  What I am attempting to do is to help you better understand what you must do in order to achieve investment success. These qualities can be utilized in any market. With the gold and gold stock markets the mettle and belief of today’s bulls is being deeply tested. Those who have invested in these markets without having entered them for the right reasons, have been driven from the market or will be shortly!

I for one believe that the entire gold complex remains in a secular, global Bull Market. Our government has been excessively increasing the money supply for nearly ten years. They have been joined by virtually all of the major countries as one after another has begun to similarly inflate their money supplies. The U.S. budget deficits already approaching unsustainable levels are growing. Further, I believe that they are destined to further burgeon due to the costs of the gathering storms of our recession, the war with Iraq, as well as our war against terrorism. These will foster a further expansion of our money stock.

Our stock market is experiencing a Bear Market rally. When it ends, and prices again decline, foreigners will reduce their stockholdings. They will then exchange the acquired dollars for their own currencies. This in turn will foster a resumption of the dollar’s fall. Further, gold production is anticipated to decline for the foreseeable future and the gold hedging companies have begun to offset their hedges. Not only will the supply of gold lessen but the amount that the producers can sell will be reduced. Also, sales by the various nations under the Washington Accord are being restricted. Of immense importance is that the war against Iraq has angered not only the Muslim World but numerous of our greatest allies. I believe that this will eventually translate into a worldwide lessening of the desire to hold dollars. This too will foster a further weakening in our currency and a simultaneous move into the yellow metal.

It is easy to forget that one plus one will forever equal two! A government cannot indefinitely create an excessive amount of its currency, to pay for its profligate spending, without ultimately suffering the consequences. At some point the marketplace will only accept its money at a discount. This is the true reason behind the dollar’s secular Bear Market. Since Gold’s price is merely a reflection of the dollar’s desirability on the world market, it is destined to rise as the dollar declines and fall with dollar strength.

As all of these factors express themselves, gold will be the prime beneficiary. Since the beginning of time gold has been the one item that man has recognized as the only true money. Paper currencies have come and gone and will continue to do so. Gold will endure because it cannot be created by the whim of government, as can their paper or electronic monetary units. We have been given numerous reasons why gold is no longer needed for money. However, until the day when governments responsively manage their finances, gold will be needed by the common man for protection against the depreciation of paper money.

Since gold recently peaked near $455 an ounce, its rapid descent to its present $426 has tested the fortitude of those who have invested in all gold related markets. While frightening and disheartening, it is no different than a number of similar secondary corrections that punctuated its great Bull Market in the 1970's. During that era gold often essentially moved sideways or lower for extended periods. However, just as its Bull Market ultimately expressed itself with an incredible move from $35 to $875, I am confident that today’s Bull market will take gold to unexpected heights that will astound most onlookers.