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Gold, silver and platinum should remain quiet

Commentaries & Views

Markets are as quiet as they get this time of year. There is very little information that will drive markets in either direction, hence the pattern we are stuck in now. Although we can identify trends, that doesn’t necessarily mean the market will move.

This action is the same in all markets; the metals are no different. You have witnessed very little action in the last few months except for a burst of buying or a short-term selloff. We have watched gold, silver and platinum grind in quicksand. The fear-mongers have tried to create energy among the gold and silver bugs to no avail.

Those who believe they can predict where markets will go next, or those that rely on the news are destined to lose. Price action is the only way to determine short-term moves, while market statistics and hedging can help the long-term investor.

We don’t predict, create need, or fear but report the facts of what we are doing and willing to do. Buying physical metals is never a bad idea, as long as you don’t confuse the purchase as a short-term play. Physical metals are for holding; paper metals are for trading.

In all markets, price action determines what will happen in the next day, week, or month. Keep the two strategies separate; the worst trade anyone can make is turning a trade into an investment hoping for a way out. Traders must learn to take their losses and move on to the next trade.

Patience, discipline, and money management always win the day. Let the map of the markets show you the way.

Join me Saturday Sept. 4 at Noon EDT as I share, Hedging, Futures and Day Trading

2021-09-04 Webinar: Hedging, Futures and Day Trading

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.