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Tuesday, December 4, 2012

The Power of Fear

Dear Readers;

Kevin defines the power of fear,

people will do almost anything to alleviate short term emotional pain, even when they believe that the future will be better.

For the long-term gold investor, there's really no distinction for the A-, B-, and C-waves. After the D-wave flush, gold moves higher at varying rates of appreciation until the C-wave top forms. The 'height' of this rally is defined by energy displayed in the waves that preceded it (D-wave, A-wave, B-wave); the ABCD count is a reflection of energy, time, and paper management.

Something is already happening, Kevin. Gold is heading higher into 2015.  The community at large likely won't recognize it until the $2,000 barrier is broken in 2013.

Eric

Eric:

Thank you for your posting this morning. As always, it is most interesting and helpful.

I think one of the challenges that gold related investors have is with expectations, both in terms of price and time. If an investor had the expectation that this A-wave up will equal or exceed the last C-Wave up before transitioning into the B-wave down, they are likely very disappointed at this point in time. While that still may happen over the next few months, all they know if that they are positioned wrong today.

Your in-depth knowledge of why things happen eludes most people, and they are forced to believe that something will happen without the basis in knowledge to support that belief. Most, I suspect, find that hard to do when prices go against them.

I have found that people will do almost anything to alleviate short term emotional pain, even when they believe that the future will be better. Knowledge is indeed power, or in this case, “sitting” ability.

Jim’s oft said comment that the gold community will not likely participate in the coming mania is likely to be prophetic. They won’t be able to stay long enough through periods just like this.

Best to you!

Kevin

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