Does The Theory Of Tetrahedron Work In Gold Investment?
Gold price charts for 2007 and 2008 (till 15 Dec 2008)
(click on the picture to enlarge)
After I have written two articles on gold investment trends, a reader, Caryn, wrote to me:
Hi Carson ! My name is Caryn Chiang and I have read your articles on gold investing.
I would like to thank you for sharing your thought with the rest of Malaysians and I am quite impress with your finding. Your chart shows the year 2008 have you tried your pyramid on the previous years? Do they work on those years too ?
Hope to hear from you soon. Thanks !
Well, here is my answer:
Please refer to the picture above. I can't find a good chart for 2007 and the above is the best I could find. I put it side by side with the 2008 chart.
I found that in 2007, there were three spikes toward the end of the of the year. And there after the price took off in early 2008 reaching the climax of just above USD1000 level per ounce on 17 March 2008.
So, Caryn, what do you think? Does the theory of tetrahedron work? Is there a natural force at work?
If you are able to find a better chart for 2007 or previous years charts on gold price, perhaps you can see the spikes. However, because in the earlier years, the movement were too small, the 3 spikes and tetrahedron pyramid are hard to discern.
Movements will get larger and larger in the coming years based on the Fibonacci theory. The price movmentss will get bigger and bigger. Bolder and bolder. I will see price fluctuation in a greater degree as in 2008. In 2009, the fluctuation will be even bigger. And this is good news for us. More opportunity to make profit when you are able to time and invest when the price is low.
Just an additional note
Nevertheless, please do not adopt this theory of tetrahedron as the ultimate guide in timing your investment in gold. You also need knowledge on determining the uptrend of a chart. Where will it head next? Up or down? You also need to have knowledge on Elliot Wave.
2 comments:
Personally I think the Theory of Tetrahedron needs a lot more research.Thanks for sharing anyway.
I have read quite a few analyst bullish on gold and I see that you are too. So, how about sharing
the best ways to invest in gold in Msia. Maybe some readers out there have a better idea than to invest via Maybank or PB Gold?
I agree with you that the theory of tetrahedron needs more research. Of course, what I am offering is just a simple theory. There is a more advanced explanation offered by Bradley Cowan. If you can get your hands on his expensive materials, you may benefit from it further. He mentioned a more detailed theory on this (http://www.divinecosmos.com/index.php?option=com_content&task=view&id=75&Itemid=36)
I have made a simple comparison on Gold Investment in Malaysia. There are other options in investing gold besides investing with Maybank or Public Bank's gold invesment account. You can actually invest in gold coins too:
http://www.unit-trust-investment.com/2008/12/147-gold-investment-in-malaysia.html
Yes, I am bullish on gold at this moment.
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