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With all the turmoil, why are gold and silver going down?

Commentaries & Views

From the greatest trading movies of all time, Trading Places, one of the best lines was "that can't right." That line is used way too often when it comes to markets; we hear it now when it comes to gold and silver. The question certainly rings true. With all the turmoil in markets and the globe, one would think they would be going higher.

We must always remember that although current events can move the market many times, they have already priced in the action we are seeing today. Since we are trend traders, and the current trend is higher, we are long but not surprised by the current price action because consolidation is a part of all markets.

What this price action shows us is that gold and silver are significant hard assets but not protection against the equity markets and are not a hedge. If you consider gold and silver anything but a hard asset, they may once again be a currency.

We are long-term holders of gold, silver and platinum as hard asset investments and will continue to do so. We will also trade them from either side of the market depending on the trend, it's that simple.

Every Monday Andy Hecht and I here is Monday's recording

2021-05-10 Recording: Monday Night Strategy Call

We had a Farmer Hedging Q+A on Saturday. Here is the recording

2021-05-08 Farmer Q+A

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.