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Gold, silver, & platinum: key tactics now

Commentaries & Views

  1. The traditional Chinese New Year “firecracker rally” for gold may be a dud this year, but investors who followed my “buy into $1788 and sell some into $1966” recommendation are in great shape.

  2. Double-click to enlarge this weekly buy and sell zones chart.  The $1767 low and the $2089 high should be the new zones of interest for gold investors.

  3. Gold could decline to $1767 or even $1671.  If that happens, I will urge all investors to take buy-side action with physical market gold, silver… and the miners.

  4. What are the odds that it actually does happen?  Well, Chinese gold prices have gone to a premium over London as of this morning, US election mayhem continues, and Goldman Sachs analyst Jeff Currie is predicting gold hits $2300 this spring and holds its ground.

  5. Also, Corona is still a problem.  The vaccines appear to be cash cows for the drug companies, but only a short-term fix for the citizens.  Mutation may be a new concern.

  6. So, I lean towards $2089 rather than $1767 as the next “order of gold price business”, but I want investors prepared to handle all potential outcomes on the gold market gridlines.

  7. 2021 will be the year of the ox for China, and that should also be the theme for the gold price; some volatility as democrat and republican combatants settle their views on the election with violence, but then new and bigger money printed handouts bring some calm to the storm.

  8. Because the calm will be oriented around more debt and money printing, gold should hold most of its gains.  It did that in 2020, but I think 2021 will see even more “ox-like” action for the world’s mightiest metal!

  9. When gold is in an “air pocket”  between the key buy and sell zones, as it is now between $1767 and $2089, there’s not a lot to do, and investors can use the time to look at other important markets.

  10. Double-click to enlarge this COPX copper stocks ETF chart.

  11. Doctor Copper” is probably due for a pullback against the dollar, and so is the stock market, but that pullback can be bought in anticipation of (initial) “growthflation” from the government handouts.

  12. There’s a real danger that growthflation becomes stagflation by 2022, and that would see copper hold most of its gains, like gold.

  13. Double-click to enlarge this key silver chart.

  14. There is quite a big difference between the gold price action and the silver price action, and I will suggest that is because of imminent inflation.

  15. Gold has made a new all-time high against the dollar and broke out of a big H&S bull continuation pattern back in 2019.  That’s because gold does well in both inflationary and deflationary times. 

  16. In contrast, silver shines brightest when inflation becomes a real possibility.  This awesome metal has only recently broken out from its base formation, and I think the breakout is mainly related to potential inflation. 

  17. Silver also sits far below both its 2011 and 1980 highs and thus offers investors tremendous leverage to gold.

  18. In the inflationary environment that I am predicting begins this year, the price action for silver may look a lot like that for… platinum.

  19. Double-click to enlarge.  Like silver, there is a big base pattern in play for platinum on the monthly chart.  A breakout to the upside appears imminent.

  20. Double-click to enlarge.  This is another look at platinum, using a quarterly bars long-term chart.

  21. A dip in the stock market could see platinum dip lower and form the right shoulder of an inverse H&S bottom pattern.  Whether that happens or not, the key number to watch is $1200.  A breakout above there ignites the upside fun!

  22.  I like owning both physical metal and the ETFs.  In the case of platinum, the PPLT Aberdeen ETF that I highlight here has decent trading volume, and it trades on the NYSE. 

  23. Stoploss enthusiasts who want to buy right now can use $92 as their short-term line in the sand, but I suggest holding some positions with no stop at all. 

  24. Buy more on any price dip, in anticipation of higher prices ahead!
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.