Gold Q&A: Answers to our Subscribers' Most Pressing Questions

• Can I use fundamental analysis alone?

  October 29, 2010, 12:00 PM

  I don’t feel comfortable reading charts myself. Do I have to analyze them or can I stick to fundamental analysis? Some of the experts I've been reading suggest I can use fundamentals alone. Is this right?

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• What if the CFTC makes an intervention on the derivatives market?

  October 29, 2010, 12:00 PM

  What if the CFTC (U.S. Commodity Futures Trading Commission) takes action on the derivative market? Should one still use gold and silver options?

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• Should I go long gold when the government prints money?

  October 29, 2010, 12:00 PM

  Does it make sense to bet on (short term) higher gold and silver prices if the government announces it is going to expand the money supply?

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• What if the analyses we use are wrong?

  October 29, 2010, 12:00 PM

  I’ve heard that the main driving force of the markets comes from investors who are trying to predict the government policies. If this is right could quantitative, technical, and statistical analyses be completely overruled and become ineffectual? If someone has enough cash, they can trigger a huge rally or a significant selloff in any market. Does this mean that there are no sure bets and we shouldn’t invest in anything?

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• What if human nature has changed the precious metals market?

  October 22, 2010, 12:00 PM

  Your weekly updates comment on the consistency of human nature as the foundation for your analysis. Yet, human nature is precisely the engine that is now pushing gold to behave in a manner quite outside the patterns that defined previous years. Isn't it logical to assume that the patterns of old will yield to human nature's reaction to a new world financial context? A context founded in fear, uncertainty and doubt? Perhaps expecting corrections to behave as they always have in the past no longer makes sense as human nature reacts to a financial world gone mad?

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• My junior stocks don’t perform well. Should I sell them?

  October 15, 2010, 12:00 PM

  I’m interested in the junior ranking. I hold some juniors and they haven’t been performing well recently. What should I do with them? Should I switch to other juniors or should I do something else? I would very much appreciate your answer.

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• Can I profit on options even if I'm wrong several times?

  October 15, 2010, 12:00 PM

  Is it possible for me to manage to increase my portfolio if several of my predictions turn out to be off the target? I know: you’re wrong, you lose, but is there perhaps a way to profit even if I have made a series of bad decisions?

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• Don’t your charts become outdated if the market conditions change?

  October 15, 2010, 12:00 PM

  In your analysis you use a lot of charts. Don’t they become outdated if the market conditions change? You use charts, patterns and algorithms. However, the assumptions on which you use them could have evolved along with the change in the underlying economic context. This could imply these tools are no longer applicable.

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