Despite the old advice to “buy low, sell high”, we all know what people really do. People tend to be skittish and nervous when prices go down, fearing they will drop further. They stay nervous until well past the half-way point in most run-ups. Then near the tops, everyone piles in – when prices are high. Then, when the last buyer is finished – prices start dropping. Slowly at first, then more rapidly. This pattern affects gold demand as much as any other market.
And it looks like this is happening again in the world of gold. Prices dropped last month – not too far, we’re still within the boundaries of the 1310-1350 range – and that made most nervous. Except in Germany and the United States, where the company BullionVault had increases year-over-year. Buying while prices are low? What are these people thinking?
Today’s featured article discusses the increase and some of the factors surrounding it. And as a special bonus, it even mentions silver at the end. DISCLAIMER: The Gold Enthusiast has no ties to BullionVault; it’s just an interesting article that let us remind you of the #1 rule of making money, which is buy low, sell high. In case you forgot already.