BHP Tinto

Still holding the line......

Could someone please tell me how you arrive at where the red resistance line is drawn?

A Gold topic and a Silver topic should be pinned at all times.....easy to find to get the latest info. We are in a major bull market in commodities, and gold and silver are leading the way.......these topics are important.

The Top Callers Are Back In Force Posted: Dec 03 2009 By: Jim Sinclair Post Edited: December 3, 2009 at 11:24 pm Filed under: General Editorial Dear CIGAs, To all those emailing me about whacked out internet writers with no authority other than a used laptop to spit out their various theories on why gold has topped, please stop. This has happened time and time again over the last few years, and they have consistently been proven wrong. One stands on the premise that the IMF would never sell a low in gold. That is the lamest thing I ever heard. Of course they would, and they did in the 70s. Gold is going to and through $1224, $1278 and on to $1650. Following that it is off to Alf and Armstrong’s projections. Everything in between is senseless trader noise. Yes, the gold price is going to get increasingly violent, but that is what is required of a market to accomplish what gold is going to accomplish. So stop sending me this nonsense, and asking me what I think about it. My thoughts on the subject are crystal clear in this posting After all my efforts there are still so many who don’t get it.

I can't for the life of me understand why you want to offload gold ???!!!!! It's the one asset that's made new highs every year since 2000. China and India and buying with both hands. John Paulson and other smart hedge funds are buying with both hands. Martin Armstrong sees it going over $5,000, Jim Sinclair's model suggest over $12,000 Yet you want to sell? Either you are painfully unaware of the awful fundamentals of the US economy and the USD...or you know something I don't.

But good on you Charlie....well done on your journey to write a book on this topic, I hope it's something that will eventually be published and something to be proud of.

Trader or Investor? Another important lesson is recognizing the difference between trading and investing, and not getting caught in the no man’s land between the two. A good working concept here is “the Mountain and the Valley.” Here’s what I mean: Imagine a great, vast mountain off in the distance. You don’t know exactly how far away it is, but you know it’s there, waiting to be scaled. Meanwhile, in between you and the mountain is a fog-covered valley. You don’t know what kind of ups and downs will be in that valley, but you know the trip across won’t exactly be smooth. The difference between trading and investing is, investors tend to focus on the mountain and more or less ignore the valley. They keep their financial and emotional risk low enough to handle the ups and downs without losing their cool. Deliberate staying power and long-term conviction are the operative phrases here. With those two things, many hard asset and emerging market investors will be able to look past the volatility of recent days and ultimately do just fine. In contrast, the trader is very aware of the ups and downs of the valley. Rather than ignoring that volatility, the trader focuses on it. The trader’s advantage is thus speed and flexibility – an ability to buy and sell a position repeatedly as need be, get a sense of how the terrain is going, and move quickly and fluidly when the timing calls for it. So which one are you? Steadfast and true, or flexible and fluid? The two temperaments are rather different. Some versatile folks are traders and investors at the same time, but even then, not often with the same positions (or even the same brokerage accounts). In closing, do emerging market equities and hard assets still offer excellent long-term investing opportunity? Absolutely, without question. In the eyes of the investor, this week is just another dip in the valley. But in the eyes of the trader, China’s stumble – and the demise of the bear market rally – have created a shift in the near-term landscape worth exploiting. Copyright © 2009 Justice Litle

I thought Buffet was famous for not having a computer, he would just read annual reports, and work out if they where undervalued or not compared his projected earnings calcualtions. I guess my view of an investor is probably different to other people's......my goal as an investor is to a) identify a long term bull market (in this case commodities) invest in companies in that sector c) reinvest all dividends so that you can use compounding interest to grow portfolio d) once portfolio is big enough, retire from work and live off passive income from investments Yet still be knowledgable enough to know when the bull market is coming to an end and be able to switch into a new sector starting it's bull market. These bull markets tend to run for 17-18 years each.

You have called the book Free Capital: the world of full-time private investors....but after reading the chapter on 'Hugh' (which sounds a lot like yourself...retired at 34, former academic etc).....but it sounds like 'Hugh' is more of a trader than investor. Traders to me are people who go long and short and watch the market every day monitoring price movements....investors like Buffett just buy and hold for the long term collecting dividends along the way and selling out only once they figure out when the long term bull market is coming to an end. I hope to be a full time investor within the next ten years...but not a trader, I think the difference is important.