Greyerz – The Road To $18,160 Gold And The Wisdom Of Jesse Livermore
Greyerz – The Road To $18,160 Gold And The Wisdom Of Jesse Livermore from King World News
As the world edges closer to the next crisis, today the man who has become legendary for his predictions on QE and historic moves in currencies spoke with King World News about $18,160 gold and the wisdom of Jesse Livermore.
The Wisdom Of Jesse Livermore
July 7 (King World News) – Egon von Greyerz: “Lemmings have a herd mentality. But following the crowd, can have grave consequences like falling off a cliff and drowning in the ocean. Many investors have the same instinct. They follow the crowd and buy or sell when other people do. This probably won’t end in the same disaster as for the lemmings, but following the crowd virtually never leads to a successful long term investment performance.
The biggest investment profits are normally made by investing long term. But the key is to buy when an investment is undervalued and unloved. That reduces the risk substantially and thus the potential return.
Extremely important when investing is to be patient and wait for the right opportunity. As Jesse Livermore said:
“It was never my thinking that made the big money for me, it was my sitting.”
I have probably been following the gold market for longer than most people still being active today. When gold went from $35 in 1971, to $850 in 1980, I owned only a little physical gold. I also owned some Australian mining stocks since the bank where I worked in Geneva was advised at the time by Adolf Lundin. Adolf was a legendary Swedish resource investor who lived in Geneva. Sadly, he died too early in 2006, but his sons have continued to expand the Lundin Group to one of the most successful businesses in the resource sector in the world.
So back in 1969 I made my first investment in mining stocks based on Adolf Lundin’s recommendations. I remember Adolf phoning in the middle of the night in Europe from Australia with the latest hot tip. At the time there was a boom in mining stocks. The most infamous company was nickel miner called Poseidon which rose dramatically and later collapsed. Then, when Nixon closed the gold window in August 1971, a spectacular bull market in precious metals started and a bear market in paper money which lasted until January 1980…