The Conversation (0)
Gold Investing News recently published an article that looks at whether the gold market is approaching capitulation. Since then, Michael J. Kosares, founder and president of USAGOLD, has published another take on the topic.
Gold Investing News recently published an article that looks at whether the gold market is approaching capitulation. Since then, Michael J. Kosares, founder and president of USAGOLD, has published another take on the topic. He states:
The almost painfully redundant prediction I keep seeing regarding the gold price is that ‘when gold bottoms, you’ll know it, and its going to be painful.’ In other words, complete and total capitulation. But is capitulation a realistic future for the gold market, or is the notion nothing more than the latest buzzword of a biased, shortsighted mainstream financial media?
My answer, as you’d likely expect, is the latter.
… capitulation is marked by complete abandonment of an asset class to the point of panic selling, causing massive downward volatility in the price. But that characterization fails entirely to factor in the mentality of the physical gold owner, and the mentality of countries like China and India, where the role of physical gold ownership is innately understood, not questioned.
