Gold struggles to hold on, silver lower
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
The action in gold and silver is starting the fade from a couple of weeks ago, the big down move followed by consolidation. The last time gold and silver were in this pattern, after 3 or 4 days, another big sell-off came. Patterns do repeat and based on recent price action, our expectations this will have a similar ending.
We all believe that gold, silver and platinum will be much higher someday. However, many things happen on the way, including huge sell offs and ugly periods. All markets eventually go higher; the Dow has averaged an 8% gain year over year in history but not without significant heartburn for many investors.
The real key for all is to determine your objectives. Are you trading or investing? They are two separate types of trades; I do both. The physical gold and silver I own is never sold, just accumulated. However, when trading, you trade the path of least resistance and stay there until that pattern changes.
In other words, a trade is short term with determined exits based on price action; investments are long term and based on history. The strategies should never be mixed. That is usually where most traders/investors fail.
Futures and Commodities with Andy Hecht and Technomental: Our webinar on Saturday was fantastic, here is the recording