Have faithLooks like everyone here has done the research, watched the presentation, etc.
I.E. you have all the info, the key to stockmarket success is to buy MIS-PRICED assets.
Say you buy WGI at $2.25, and then it goes to $1.25, if you're analysis of the company was wrong at $2.25, then bail out.
But if you reevaluate and find that nothing has changed, then how can you not buy more?
What I want to buy are companies selling down due to the market going down, or a short term sell off in the commodity price, but nothing to do with the fundamentals of the company--during these times you can then scoop up such companies. If worldwide panicked investors only sold 5% of their stock holdings and put that money into gold, the price of gold would skyrocket.
Instead of buying 50 ounces of $1000 gold myself, I'd rather buy fractional ownership in 3 million ounces of gold for $225million, i.e. $80 bucks an ounce. I.E. that's WGI.
Also, note since the market is volatile, there's alot of stop losses placed, so the slightest down-turn can cascade.
They key to see is if the stock rebounds afterwards. Of course since the government is getting heavily into this financial crisis, there could always be some insiders who know the government's next move, and if that move is unfriendly to gold, then perhaps that's a reason to be cautious--but would the government stoop that low, and would it be legal?
If unsure, then of course, buy some physical gold too, it's always good if your bank or money market fund runs out of cash, and again, if enough people do it that should keep a floor on the gold price so that the gold stocks can continue to rise.
O.