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It feels like we are going higher. I say it cautiously, though my bets are more aggressive, as we have failed at gold 1125ish numerous times before. The catalyst, I’m not sure. It seems the markets in general want to accomplish one last push before substantially correcting, gold included, come April/May. Perhaps a rebound in the Euro (short term), maybe good economic data, I am not sure. But it feels like something is brewing. Gold looks poised to grind higher, and then, upon clearing meaningful resistance, who knows? Long term charts speak of prices in the 1350s-1440-s. I don’t know if we can get there. But I do know that March is a time for gold investors to make their move. Typically a good month, this year in particular seems like reward favors risk at its outset. I have a deep belief that any upcoming surge higher will represent the SELLING opportunity of the year as prices for most assets, commodities, equities, and bonds appear to be destined to struggle in the second half. Grim, yes, I know. But you didn’t think a rally that few could make sense of and strange men justified wouldn’t have its downfall. The time to make 2010s money is now. As such, I have been beefing up long gold and silver and platinum positions of late and intend to hold through the noise for the month. Currently, I would be surprised, and concerned, if we materially dipped below 1100 again, so you’re talking 18 points risk on who knows what reward.
It’s during the downtime that I assess gold’s position fundamentally. Now, sitting here, I disregard the perpetual blasting of some pundits, grab onto my belt, and hope for the best. So far, crazy as it sounds, this has been an award winning strategy (I obviously do not mean March 1st, but around this time give or take 2 weeks). Good luck. If you want it like I do, I second that emotion.
John Cassimatis
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John Cassimatis has been managing his own capital for 14 years in various markets.
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