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Are gold and silver miners sending a signal?

Commentaries & Views

As we remain short gold and silver, it appears the miners may be sending a message that there is strength in these precious metals. For weeks, gold and silver have been in a downtrend, trading near their key support levels.

While the physical metals have struggled, miners like GDX, NEM, AG and the leveraged ETF NUGT have been rallying or holding in uptrends. Either the physical metals will find a bottom and rally, or the miners will find a top and selloff.

This type of action is always interesting and eventually will resolve. However, we don’t know where or when they will resolve, nor do we know in which direction. All markets are in interesting times, with light volume with contradictory trading. We will always stay the course of the trends and algorithms; the market will direct us.

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 me tonight at 4:30 EST for our Monday Night Strategy Call. The link to register is below.

2022-04-04 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.