Where are the Gold Bugs?
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Gold and silver took it on the chin Thursday, which brings the question, where are all the gold bugs? Where are the geniuses calling for $5,000 gold? It’s amazing how they disappear when the heat is on.
Gold and silver are going lower until they don’t; the trend is down. Why do traders and investors believe they can pick tops and bottoms? Gold is a heavy favorite to take out the flash crash low; there is no guaranty, but in the current environment, that’s what it looks like.
Remember to classify the purpose of buying gold, silver, or platinum. Is it a trade or investment? If you are trading, you must have an exit and know where that is before you put the trade on. If you are an investor, only buy what you can buy for the long haul. Investments should never be made if the money is needed.
We remain short gold and silver with no reason to reverse that position. Until the trend changes, we will sell rallies on every opportunity. Trading is like dating and investing is like a marriage.
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.
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