The psychology of buying gold and silver

Gold and silver this week

The New Zealand dollar is back strengthening over the past week against the US dollar.  So local gold and silver prices are down a bit from a week ago.  Overnight gold and silver both dipped down significantly but have since rebounded close to where they were a day ago.

A while back we noted as it made new highs that we wouldn’t be surprised to see the gold price in NZD dip back to about $2000. .  As it turned out the day we wrote that (24 August) was pretty much the high.  Then it plunged down and just briefly touched $2000 a month later.  But was only for one day towards the end of September before bouncing straight back up over $2100.

Gold in NZD 6 Months chart to 18 Oct 2011

Since then it’s been trading in a range of a couple hundred dollars or so for the past month.  To our mind we’re pretty happy with the way gold has been behaving since the big tumble.  You might have noticed that it’s suddenly vanished from the mainstream radar screen which we reckon is a good thing.  Too much attention can cause a price to rise too far too fast so a bit more consolidating will likely set things up nicely for the next decent gain in price.

The psychology of buying gold and silver

One of this weeks articles – a round-table discussion with Rick Rule and 2 other investors touches on the psychology of investing.  This got us thinking about the psychology of buying gold and silver.  We can get a bit of a read on how things are going locally in the gold and silver area by a couple of rough measures:

1.  How many visits we get to our website – obviously more visits equals more interest in precious metals generally.

2.  How many quote requests we receive – similarly more quotes equals more interest in actually buying of course.

So interestingly (but maybe not surprisingly given human herd behaviour) we have had a little bit less visitors.  Not a massive difference but we are down on the peaks of August and September and back more like June/July.

Since the big plunge we’ve also had less quote requests than we were receiving in August/September.  So this is interesting given that we write regularly about buying when the price has dipped.  It would be fair to say this has been more than a dip, but we have personally looked at it as a great buying opportunity.  We imagine people are worried about whether the prices might fall further. Could they? – of course!  But we would hazard a (fairly safe) guess that right now is a much lower risk point of entry than when prices were breaking records every day and week.

Anyhow, just an interesting look at how the human mind works and often wants to do the very opposite of buy low, sell high.

Want to learn more about precious metals?

We’ve had some requests from readers in the past about any gold seminars/conferences etc they could attend.  We were actually looking back over old emails trying to find who they were from but no luck so far.  Anyway if you were one of them then there are a couple of close to home opportunities are coming up in November.

1.  Gold Symposium in Sydney, Australia.  14 & 15 Nov

This is a chance to see some big names in the gold and silver areas that we’ve featured in the past.  Including Eric Sprott, Alf Field, Ben Davies Egon von Greyerz and many more.  Also speaking is a friend of ours from here in NZ Louis Boulanger.  If you want to know more visit It’s great value at $199AUD until the end of the week.  We don’t receive anything if you attend so this isn’t a hard sell, just a rare opportunity to hear from a great bunch of people not too far from home and for not too big a cost.  David and I are attending so drop us a line if you end up going and we’ll look forward to meeting you.

2. Symposium on Gold with Prof Antal Fekete and others.  Auckland, NZ. 28 Nov – 2 Dec

This event is again this year organised by Louis Boulanger who as we mentioned is speaking in Australia (unrelated to the Sydney Gold Symposium and different presenters).  We attended a few sessions at last years event and as always learnt something new.  The great thing is while it is a week you can attend on any single day or group of days if you prefer.  For more info visit  Again we don’t receive anything if you do – but the pleasure of spreading the gospel so to speak!  We’ll likely be along there too at some stage.

Other articles this week

As we mentioned above one of this weeks articles is a round table discussion with Rick Rule who we had the pleasure of meeting briefly a year or 2 ago at a Casey Research gathering in Auckland.  His company Global Resource Investors is now a part of the Sprott Group (as in Eric). Casey Research Summit Special Report: Surviving the Death of Money

There’s a great read from James Quinn of on what Chinas future may hold and as we say in the intro, China is “someone” we must pay attention to. China: Continued Boom or Bursting Bubble?

You may have seen this already as we put it on our Facebook page as soon as we stumbled across it but if haven’t been there then this very recent program from the History Channel sure beats Americas Next Top Master Chef Celebrity Apprentice or whatever for night time viewing.Video: Brad Meltzer’s Decoded: Fort Knox – Is the gold still there?

And finally a look at how undervalued gold stocks remain.  Is It Time to Load up on Gold Stocks?

PAMP Lunar Calendar Series

One of our suppliers has just got in from the Swiss refiner PAMP, their Lunar Calendar series bars.  These are in celebration of the Chinese 2012 New Year and are very attractive gold and silver bars in a variety of sizes.  They are semi-numismatic so are slightly more than a standard PAMP bar but not by much.

For example the 1oz gold bar is 6.5% over spot.  These may be of particular interest to any of our NZ based Chinese readers or if you’d like a bullion product just a little bit different or for a gift, without a massive collectors premium of 100% over spot or more.  Check out the brochure for them…  PAMP Lunar Calendar Gold and Silver Series Brochure

So give David a call on 0800 888 465 if you’d like a quote for these or any of the other precious metals products we have access to: Full Product List.  Or email [email protected]

As always have a golden week!


Glenn (and David)
Gold Survival Guide


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  1. Pingback: When to buy a ticket for the gold train? | Gold Prices | Gold Investing Guide

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