If you don't know much about gold or commodities and how they work, you can go very deep into that rabbit hole. The more you learn, the deeper it gets. You start tracking all the variables, following all the news, and eventually you create ghosts in your mind like "these markets are rigged" or "things happen before they happen."
This is a rant directed at my father, whom I have told many times that he is new to all of this.
The whole YouTube and social media crowd creates content around things like "gold is hitting $10,000, see I told you!" or "whenever there are wars there is economic instability and gold is the safety net." Some of you already know there is no such simple rule. Yes, people react to the news, and yes, people hoard gold during uncertainty, but that alone does not drive the kind of returns these creators promise. It just does not matter in the way they claim.
And even if some of that were true, there is minimal return if you buy at the top, which is exactly when new people get pulled in. They see the price surge, they get excited, some even sell things they own just to buy in. That is the worst possible timing.
Market analysts know that prices oscillate. That is the whole point. What looks like a rocket going up is just one half of a cycle.
Image: Photo by Kelly Sikkema on Unsplash
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