How to Lose Money: Invest in Gold Stocks

“How to make a million? Start with $2 million – and invest in gold stocks!” – The Maxims of Wall Street (revised for gold bugs).

What is by far the most dangerous and high-risk sector of the market? Gold stocks!

Recently, I spoke at a gold bug convention, and after my talk, I was surrounded by several doctors, lawyers and other professionals who confessed that they had lost 70% of their portfolios.

“How is that possible?” I asked. “The stock market is at an all-time high!”

“We listened to the doom-and-gloom talks from speakers at this conference five years ago,” they admitted. “We sold out of the stock market and bought mining companies promoted here at this conference.” … Read Full Article

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Economic Expectations Spells Trouble for Gold Price

Behavioral finance points to $1,050 gold price

Frankfurt-based Sentix, a leader in the emerging field of behavioral finance, has been compiling sentiment indices since 2001 by surveying more than 4,500 institutional and private investors.

The latest reading of the Sentix index of economic expectations spells trouble for the gold price.

Capital Economics, a London-based researcher, in a research note points to this graph to provide support for its prediction that the gold price would be trading at $1,050 an ounce by the end of the year… Read Full Article