Gold - did you know?

Human Shortsightedness

When we hear from the uninformed that Gold and Silver prices will collapse, it is hard not to laugh.

We first began investing into YOUnique as a Gold wealth business quite some time ago. For the last several years we have been taking note of much data in relation to this market sector, gather-ing information from related businesses we are already involved in as well as many different consultants, CEOs and counselors along the way. These executives have been uniformly bullish about Gold and Silver as a business and uniformly convinced that global demand for precious metals will grow while supply has systemically shrunk.

In the past I openly declared we will see vastly higher prices from current prices only to be met with audible skepticism coming from the audience. Today I don‟t hear from those same individuals. How-ever, those new to this sector have their reservations only because they are uninformed for a multiple of reasons. This creates a great opportunity for the new IBO in this business. Also, many professionals are uninformed as well confirming the opportunity even more. Sure, there are price dips and consolidations; how-ever, the fundamental and economic trends show long-term sustained in-creases.


The companies in the precious metals industry disagree with the scenario of Gold prices going lower. Moreover, the going lower option is definitely not corroborated by common sense.

I have consistently stated that demand is outstripping supplies on a consistent basis. As of 2009 demand for Gold on an investment level has outstripped demand from a jewelry perspective. This is the first time in over eight years that this has happened. As we move into the investment sector demand of this market, the newer-type participants as they enter will not be lured into the precious metals sectors because of cosmetic, numismatic or collector factors, for they are much more focused on Gold and Silver commodity value.

Did you know that China has just stated it will double its Gold demand within ten years; India continues to increase its demand; Russia and the Asian nations are all doing the same thing. Not only that, but central banks have now started to become consistent purchasers of Gold as well. The trend is now set, and like a huge Panamax oil tanker, will not be easily turned around in the short or medium terms.

Why are people so easily moved in the short to medium terms? Because prices ebb and flow up and down, people become emotionally moved with the daily prices without understanding its fundamentals. There is no logic to this phenomenon, yet people are moved although they ignore the fundamentals such as inflation and supply/demand either by lack of knowledge or sheer ignorance.

Market traders have a saying, "Price action makes market action." It's true, because traders actually play on this human emotion for profit. In today's world, because these issues are ignored, people end up becoming by default myopic or shortsighted when they need to be more like a farmer - in it for the long term and not easily moved by one day's bad weather or even a storm that has passed through. The farmer has a fundamental view and does not bail out if he experiences a drought in one season. He hangs on knowing that the longer term view will bring rain or sun again. He is prepared for short to medium term setbacks with things such as stores or stock.

In other words, „savings.‟ Some people, who have sold in and out of precious metals, have lost a lot of money and never learned. Then there are those who sit on the sidelines, hesitant and procrastinating over the long term, who simply miss the opportunity altogether. – A thinking point here.


A business is an investment. Many people today think like traders and are too short-term sighted. We need to look at fundamental economics, social, political and company facts and the probability that one scenario or another may unfold, always looking for opportunity. We need to understand the details of our business and determine the probability of experiencing a specific outcome. We do not merely glance and trade on rumors, half-truths and emotions. We must believe that a fundamental understanding of the economic, political, societal and company background gives us a substantial advantage in the long run. We have to work the numbers. – Another thinking point here for IBOs.

I am constantly reminded to keep the big picture in mind. We must avoid being gripped by the shortsighted emotions of the moment. You see, history (secular or religious) deals with the same old human projects: war, politics, statecraft, and the building of wealth and power. History also deals with the same old human failings: anger, obsession, ego, and the corrupting influence of possessions and power.


One message is played out over and over again. Taking a risk leads to greatness if well managed. A second frequent message is how an inflated ego and an outsized sense of one's self-importance and one's ability can lead to the rapid decline of individuals and of states. It is interesting to examine the fortunes of nations, groups and individuals in the context of secular and biblical history.

Thinking point: A business is an investment!

Until next time,

Simon Heapes

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