Learning to cope with wild market swings as a precious metal investor
Whatever your thesis for being in the precious metal space, expect it to be tested, said Brian Leni, founder and editor of Junior Stock Review.
Leni was a guest on the Kitco Podcast on Friday for a discussion of the week's events with Mining Audiences Manager Michael McCrae and special correspondent Paul Harris.
Gold did its best to rattle investors. This week's price correction saw gold shed nearly $200, falling from $2,060 an ounce to below $1,880. Since then, gold has stabilized around the $1,950 level. Some technical positioning suggest the bullish trend will continue and gold could carry on at $2,000-level next week.
Leni said investors must expect wild gyrations in the precious metal space. To succeed he said people need to understand themselves and how they react to stress.
"If you can understand how you react to stress, I think you can come up with a plan to do well in the market," he said.
Leni asks investors to remember why they got into the market in the first place.
"What are the fundamentals that caused you to put money into the market? Stick to those and try to set yourself up for [performance] at that same level no matter what's happening around you," said Leni.
"I have a set of rules that I use. Whenever I make a decision, I reflect back on those rules. It keeps me anchored. I'm able to shut out the noise...just concentrate on the investing."