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<p>[QUOTE=&quot;vegasvic, post: 415714, member: 15296&quot;]Stocks and gold act amazingly the same.&nbsp; Both showing lines of resistance and support, both tending to follow their 100 and 200 day moving average and the patterns that both leave on daily closings prices are amazingly similar.&nbsp; Unless you have sold gold or silver, you only have paper losses at this point.&nbsp; I tend to believe this is a good point to cost average your holdings.&nbsp; i.e.&nbsp; If you bought ten ounces at $900 and then buy 10 ounces at $800 your average cost is $850, down from the original $900.&nbsp; Meaning anything sold over $850 will give you a profit.&nbsp; </p><p>I beleive we have a market based on fear.&nbsp; With all the uncertainty in the world it is natural.&nbsp; Russia invades Georgia, the Iraq war, gas prices, US inflation, the dropping US dollar, a Presidential election between two weak candidates and the apparent coming recession.&nbsp; Are all factors of uncertainty, but all are factors that should lead to higher gold prices.</p><p>As Warren Buffet has stated time and again he buys on fear.&nbsp; If a stock, the market as a whole,commodities, etc. are being sold cheap on the fear of the future, he will step in and profit on that fear.&nbsp; </p><p>I give less creedence to the idea that India and China need it for electronics.&nbsp; Yes, they will need it, but they won&#039;t buy it day to day or buy it outright.&nbsp; They will purchase futures contracts and either sell the contracts or take delivery for their manufacturing.&nbsp; </p><p>What I believe is happening is that short sellers of gold, had to unload their contracts or risk having to purchase the gold.&nbsp; I also believe there are a large percentage in the futures markets, going naked and leading the fear.</p><p>I think the best advice is to stay the course, if you can leave it as a paper loss do so.&nbsp; If you can afford to purchase more, do so.&nbsp; </p><p>When I first got into Finance, I was told in grad school, you will never buy at the bottom or sell at the top.&nbsp; Truer words were never spoken.&nbsp; I also beleive in never being afraid to take a profit.&nbsp; After all, a small profit is better than breaking even or taking a loss.</p><p>Sorry I took up so much room, but with gold at $800 an oz, down approximately 20% from its high, I wanted to share my philosophy and one that has served me well in stocks, bonds and commodities.</p><p>Vegas Vic[/QUOTE]</p><p><br /></p>

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