Both precious metals ended up lower again today as the knife keeps falling and no one is daring to grab it. Gold and silver maintained their -100 scores. Some say China had something to do with it as they dampened stimulus hopes just because recent data has been week. Home sales also fell.
Mining stocks look like a double bottom and it wouldn’t surprise me to see a bounce coming. I wouldn’t go large shares by any means, but on a dip tomorrow it may make sense for a trade. In markets like this where prices are falling, I’d also be quick with taking profits. One reason for this is I still see gold taking out last years lows of the $1,190 range as I have mentioned several times. This despite any rebound from these oversold conditions.
JNUG for example today touched its 52 week low and its score went to -100. Scary times for the triple leveraged junior miner ETF as this is not an investment I would recommend for the unseasoned investor to trade.
When it comes to the metals, I have used the word “patience” more than once. It’s not easy to sit through this strong downturn but out of the ashes, the metals will at some point fly.
Doug Eberhardt is a 28 year financial services veteran and precious metals broker selling gold and silver at 1% over wholesale cost. Doug has written a book to help investors understand how gold and silver fit into a diversified portfolio, how to buy gold and silver, and what metals to buy. The book; “Buy Gold and Silver Safely” is available by clicking here Contact phone number for Buy Gold and Silver Safely is 888-604-6534
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