Youtubers are now promoting Gold advocating to get out of the equity-market and put money into Gold.
Just so you know, Youtubers will say anything to get few extra bucks (and they have no expertise when it comes to the markets).
If you go long on Gold and exit on equities here, you will be committing the unpardonble sin in the market–‘buy high and sell low.’
IAU MONTHLY BARS
Most people can’t perform the simple task of ‘buy low and sell high‘ as they always ‘buy high and panic-sell low.’
Very simply put, you want to buy when my oscillator is at the bottom of its band and you want to sell when my oscillator is at the top of its band (see red arrows).
Not only do we have the oscillator at “EXTREME OVERBOUGHT” reading, but my Fib Extension is at the level where it marked the top during 2011.
What happeend during 2011?
IAU was topping out for a year and then it crashed 50% subsequently.
Yes, the topping process can take upto one year.
Why?
Well, during the one-year topping process, all these Gold shills on Youtube/TV will promote it saying that this is the “safer” and “better performing” asset (especially after ‘2025 Tariff’ concerns, these mofoz will press it pretty hard!).
The naive public, the unsuspecting/untrained people will get duped into buying Gold at the top just like during 2011.
Not only Gold crashed 50% but did not bottom until the year 2018—that’s 7-year bear market in Gold!
How did S&P 500 perform during 2011-2018?
+150%
