Knowing What To Do Is Simple

Back in the 80's, when I was in the mutual fund business, I read a book by Peter Lynch, then, the most successful mutual fund manager in the world, that gave the secret of his success in stock-picking. He shared that one of his "tricks" was to take all the neighborhood kids to the grocery store every Saturday morning and tell them to buy anything that they wanted. He, then, would go back to the office on Mondays and check out the companies that produced the products that the kids purchased.

I think this story highlights the core of successful investing, and, anybody can do it. What was Lynch doing? He was simply guaging the demand for various products. And as we all learned in basic economics, rising demand leads to rising prices.

Armed with that knowledge, I ask you to consider the following comments made by Ed Steer of Casey Research in his Gold & Silver Daily column:

"I remember four or five years ago when a story on gold came out so seldom that you could count them on the fingers of one hand in a one month period. They are now arriving in my in-box at that rate per hour!

That's the excuse I'm using for the boat load of stories that I have for you again today. I have come to dread my Tuesday column, because there are three days worth of stories to post. In the 'old days'...a gold story on the weekend was unheard of. Now it's commonplace."

With the financial community slowly waking up to gold and beginning to write about it, it is only a matter of time before the public at large jumps on the gold bandwagon. Of course, with that increased demand will also come increased prices.

It's not too late to get ahead of the trend, but the window of opportunity is certainly narrowing. Right now, armed with this knowledge, knowing what to do is simple.