I would find it very comical how Wall Street lusts after our gold coin investments if it weren’t so pathetic.

January 24, 2011 – I would find it very comical how Wall Street lusts after our gold coin investments if it weren’t so pathetic. In the week of January 12 we average Joes pumped some $3.8 billion net into the market according to Jason Zweig of the Wall Street Journal, causing the money barons to crow “Here come the sheep, just in time to be shorn.”

“Hedge funds and other professional traders, having loaded up on U.S. equities with cheap cash pumped into the economy by the Federal Reserve, would like nothing more than to dump their positions onto” small investors, says Zweig. But that $3.8 billion, even though it was the largest net inflow since May of 2009, was but a 0.09% drop in the total stock fund bucket and just 11% of what investors withdrew last year.

The truth is that we have gotten wise to their game. Professional traders “who have been buying are looking for the greater fool to take them out, and the greater fool has always been the little guy," says Charles Biderman, chief executive of TrimTabs Investment Research. Zweig contends that “perhaps the so-called smart money shouldn’t be too smug in assuming that small investors are ready to play the patsy again anytime soon.”

Still average investors have earned their reputation as sheep, rushing headlong into the market whenever prices shoot up. That is precisely what professional traders want us to do. They have driven the market up to nearly double the point where they entered and they need to cash out before the collapse they know is imminent.

It pleases me no end that so few investors have been suckered in this latest round, still unaware that the game is rigged. But it is a shame that so many others are losing wealth in cash investments at a time when gold coins could be preserving their wealth.

Kevin Johnson

Senior Staff Writer – GoldCoin.net