Dr Steve Sjuggerud from DailyWealth.com wrote about a simple and proven tip for deciding when to buy (keep or hold) Gold, and when to swap for cash.
Using this method, if you had invested $10000 in 1968, it would now be worth $1.28 million USD.
It’s incredibly simple, you watch and follow the 9 month simple moving average. There’s a good description of moving averages here if you aren’t familiar, but the chart below shows the idea, the arrows are BUY GOLD signals
If gold returns to its 300-day moving average, but its fundamentals remain strong (ie central banks are still inflating the money supply), then buy, buy, buy.
“When markets are declining people become more fearful and use a different part of their brain than during periods when markets are going up,” he writes. So the reason it works is “rooted in human psychology.”
Meb says it’s “simple” and “timeless.” And he’s right.
You can make it a lot more complicated. But simple is elegant. A few minutes a year turned $10,000 into $1.28 million over 41 years, without any number gymnastics. Why make it more complicated?
Right now, the simple gold indicator says “buy.”
Here’s an example of a simple moving average chart for Gold on Yahoo
Good investing from buygoldsilver.org