Denial Is Not Just A River In EgyptThursday May 05, 2016 09:08
The cautious and bearish tone from almost every precious metals expert on the sector continues to amaze me.
As gold pundits and paid subscription newsletter writers alike continue to keep their subscribers out of this sector, the mining shares continue to climb the goldbug wall of worry.
Since the middle of March, almost daily, I run across an editorial telling me to “Wait for the inevitable 50% miner share correction before re-deploying my investment capital”, or “The commitment of traders reports (CoTs) in gold and silver have never been this bearish”. One analyst believes if there is not a correction in the miners soon, then we are still in a bear market and the miners will lose all of their gains and possibly more! Meanwhile, new institutional money that was not burned by the vicious bear continues to buy value. I seriously doubt they will be selling any time soon if the miners continue upwards without a correction here.
Many of these gold centric newsletter writers have been conditioned by the previous bear to continue to trade as this new bull continues higher. They are too busy concentrating on the previous bear market tree that has already fallen when they should be focusing on the new bull market forest that is presently growing faster and faster.
Most of these services are long-term bulls that missed the bottom and are now hoping for a hard correction so they can “get back in”. So we have long-term bullish sector subscribers paying long-term bullish sector newsletters to keep them out of the new bull market they have been waiting for!
David Erfle is a 52 year old self-taught mining sector investor. He stumbled upon the mining sector in 2003 as he was looking to invest into a growing sector of the market. After researching the gains made from the 2001 bottom in the tiny gold and silver sector he became fascinated with this niche market. So much so that in 2005 he decided to sell his home and invest the entire proceeds from the sale into junior mining companies. When his account had tripled by September, 2007, he decided to quit his job as the Telecommunications Equipment Buyer at UCLA and make investing in this sector his full time job. He personally survived two bear markets, witnessed incredible sector changes and had to alter his investment philosophy numerous times in order to adapt to changing market conditions."