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Is It Time To Buy Gold?

Commentaries & Views

Trading Places was the hit movie in the 1980s, with a scene in which Winthorp and Valentine were in the frozen-orange-juice pit watching the market going straight up. Valentine, getting nervous, says to Winthorp, “Louie, is it time?” The answer was simple -- not now. They watched the rally continue, waiting patiently for their opportunity.

The gold market is becoming very similar to that scene in the movie with the exception that gold is going down, not up. However, the action is consistent -- gold goes down every day and everyone wants to know if it’s time
Again, the answer is the same -- not now. Like all markets, there is a right time and place to enter a trade.

Traders and investors must watch the market footprint, waiting patiently for the right time. Buying gold here would be the same as trying to catch a falling knife -- dangerous and not very healthy. We will wait for the signal from Louie.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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