Gold and silver sell off, buying opportunity
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Wednesday’s trade was expected -- maybe not the depth of the selloff, but the price action. We should expect this type of price action for the next few days or weeks as gold, silver and platinum work back towards the mean.
This morning the metals were lower and just after 5:00 EST, there was a big spike higher in prices. We expect this early spike to be sold into, which is not a negative; it is expected. The trends are higher in all metals. The longer they churn around the mean, the bigger the rally will be.
This is a very interesting time in precious metals; there is massive potential for explosive moves higher. Obviously, there are no guarantees that this will occur, but as the precious metals sit now, it’s a high probability.
Precious metals should be owned on a physical basis with capital that is not needed tomorrow or anytime soon. Trading should be done with paper, knowing that we can trade either side without emotions.
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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