Is It Time To Buy Gold?
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
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.