There is a good reason Wall Street wants to discourage gold coin investments – they interfere with the money grab cycle.

March 1, 2011 – There is a good reason Wall Street wants to discourage gold coin investments – they interfere with the money grab cycle.

The money grab cycle is simple: first the market begins to slide and individual investors start to worry. Eventually the dip gets so deep that they panic and decide to cut their losses. They sell their stocks for whatever they can get, and insiders scoop them up. Then the market mysteriously turns bull.

Overcome with sellers’ regret, those same investors watch in envy as the market rebounds. They have lost big and now they want to be on the winning side. But still they are cautious. All the while the word from Wall Street is that the sky’s the limit on equities, and eventually that lures them back in, buying the same stocks that they had dumped just a short while ago at grossly exaggerated prices.

Put that way, it is obviously ridiculous. But investors fall for it again and again, because humans are wired to repeat our mistakes. It’s “what psychologists call ‘counterfactual regret’ – the haunting sense of what might have been,” says the Wall Street Journal’s Jason Zweig. The realization that they would have done very well had they only held on a while longer is a powerful force that clouds reason and draws them back.

It also makes investors susceptible to Wall Street’s lies. “Behavioral science tells us that . . . it’s 13 times more likely Wall Street is telling you a lie than the truth,” says Paul B. Farrell in Market Watch. “That’s why they win . . . Our brains are preprogrammed to cooperate in their con game.”

The money grab cycle will continue “until America gets hit over the head by a brutal wake-up call, like 1929 and the Great Depression 2.” Or we can stop it now by investing in gold coins.

Kevin Johnson

Senior Staff Writer – GoldCoin.net