A study of PM investors' psychology, in one easy chart

One of the (very few) criticisms made about me on the silverogosphere is that I can be a little wordy at times.


So, without further ado, here is a study of PM investors' psychology in one easy chart, and one easy YouTube clip.


Thank you.

A study of (some) PM investors' psychology, in one easy chart




A study of (some) PM investors' psychology, in one easy YouTube clip


6 comments:

dave bennion said...

LOL. kinda true but any trader (stacker or not) knows that these kind of movements, after critical data releases are just other traders, wether machine or not, reacting or riding a move. A move up like that has nothing to do with 'stackers' we ALL know that, so why be so cruel to them?

Bullion Baron said...

Well played Jeanne d'Arc. It's funny, because that's exactly the sort of ridiculous excuse I see on the Silverogosphere when the price falls...

The script is usually very similar:
Takedown
Manipulation
Raid
Cartel
Naked Shorts

Jeanne d'Arc said...

@BB - cheers. Oh, I wish I'd thought to use the word 'takedown' on the chart. That's a particular favourite of mine on the silverogosphere. Especially considering that the corresponding 'take-up' by 'arrogant, corrupt longs' is never discussed... ;-)

@Dave - Oh, would that that were the case.* Sadly, it seems that many 'stackers' have such a poor handle on how the markets work that they do indeed imagine sharp movements up being the work of physical buyers (albeit attributed to China or some such, rather than mom and pop coin buyers) but sharp movements down being the work of wicked paper shorters.

I don't blame them: if one read only TF Metals Report, Harvey Organ and Silvergoldsilver every day, then that is very much the impression they give. Longs are phyzz, shorts are paper, in their distorted world view.

Regardless, you're probably right to say that I'm being a bit cruel to 'stackers'. I'm not one myself (I have had gold in a vault from time to time, but I now much prefer the liquidity of paper - it's way more profitable), but in retrospect I suppose I could just have described them as 'noble longs'.

For the record, I absolutely do not hold in contempt those who choose to save in gold. I think on balance that it's probably a sensible and sound strategy. The big proviso is that there are ways and means of doing it, and rushing in when the RSI is high and the spot price is basically begging for a plunge is not one of those ways and means...

(* it's not often that one gets to see such a beautiful English subjunctive on the silverogosphere. +1 to me :-) )

Dan D. said...

Fantastic work as always ... love it. As discussed in my email to you today requesting permission to re-post, I will do just that and ensure that the masses see this funny but very true little tidbit.

Kid Dynamite said...

love the chart annotations... I also love this:

"Sadly, it seems that many 'stackers' have such a poor handle on how the markets work that they do indeed imagine sharp movements up being the work of physical buyers (albeit attributed to China or some such, rather than mom and pop coin buyers) but sharp movements down being the work of wicked paper shorters."

dave bennion said...

Yeah could be right, if all you ever read is TFMR and SGS you got a pretty distorted market view. Most folk on that move would be very short term traders with tight stops looking to pull a few leveraged pips out of a quick move. A better example may have been the run from $25-50 and the subsequent retreat. Thx for explanation.