It is pretty much expected today that any investment analysis with justifiable conclusions will be steeped in technical study that includes lots of charts.
This seems especially true of gold.
Which is all well and good, I suppose; except for the obfuscation:
Obfuscation is the obscuring of the intended meaning of communication by making the message difficult to understand, usually with confusing and ambiguous language. The obfuscation might be either unintentional or intentional (although intent usually is connoted), and is accomplished with circumlocution (talking around the subject), the use of jargon (technical language of a profession), and the use of an argot (ingroup language) of limited communicative value to outsiders.
Some of the obfuscation is understandable. For example, there are issues of legal liability for writers and analysts who are dispensing ‘investment’ advice. Therefore, open-ended interpretations can be useful – and protective.
And, if you have paid subscribers, you need to provide a noteworthy amount of (mis)information to justify the subscription price. The obsession with charts and technical analysis, and their byproduct of obfuscation (intended or not), has confused most people.Other than that, most people are not short-term traders. Most people are not traders at all. And it is unlikely that they will gain a better understanding of gold. This is because there is a lack of accurate explanations regarding gold’s fundamentals .
Where can a clear explanation of gold’s fundamentals be found?
Aside from these concerns, there are times when charts can be useful.
For example, if you have a clear and accurate understanding of the fundamentals, and even if you are a long-term investor, you might use chart patterns of price action to provide possible entry and exit points.
The more trade-oriented you are, and the more short-term your objectives, then the more critical are your purchase and sale points. Hence, you would want to pay closer attention to the technical factors.
Leave A Comment