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Gold and silver sell off, buying opportunity

Commentaries & Views

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.

Join us Monday, March 14, for the Monday Night Strategy Call. The link to register is below.

2022-03-14 Monday Night Strategy Call

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.