Gold Market Repeats 2009 Pattern

Some investors (who were "ahead of the curve") may already have fully protected themselves with whatever "quota" of bullion they believe will be necessary. Such investors have the luxury of being more aggressive with their investment decisions -- and to go looking for higher returns with the discretionary dollars at their disposal. For most of us, however, we are still not close to the point in our accumulation of bullion where we can afford such luxuries.

"Capital preservation" must be our mantra, and that means doing our bullion-buying sooner rather than later. Given that both gold and silver are at only a tiny fraction of their true, current value, it is foolish for investors to pinch pennies and delay their bullion-buying hoping that there will be some gift-wrapped "buying opportunity" (perhaps accompanied by a polite warning from the bankers that this is our "last chance" to buy).

At the best of times, markets rarely "telegraph" such buying opportunities, and the economic nightmares that lie ahead do not provide investors with the luxury of simply regretting their failure to buy (in hindsight). We all have a choice today on whether to "protect" our futures, or to "gamble" with them.

In this case, it is quite easy to see which group various "players" in markets belong to -- as the gamblers are the ones sitting with a fistful of banker-paper.

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