Gold and silver are flat to up so far this morning but the miners haven’t yet followed through. The risk vs. reward for a long is still there with a fall below $1205 in gold as a stop. JNUG is 3.50 as I type, the low of the day. JDST would have been a good play from the break of $16.20 to $16.87, the high of the day. As with any 3X trade, keep stops if you don’t have the capital to ride out the swings that temporarily go against you.
The dollar is down today which should be giving gold a boost. That’s one of the main reason from a micro perspective I am staying bullish miners.
UGAZ took a further hit today with the NG report coming out with a decline again. This is market makers having their way playing on the trend. Looks like DGAZ was the better play but UGAZ, there is no doubt in my mind, should be accumulated for a swing play on these dips. Remember, it was just $18.81 on Nov. 20th. As with any of the 3X ETFs, it can be volatile. It’s presently at 8.87 as I type, down 10% for the day. You can see the red candle down on the chart below as the trigger for lower prices in UGAZ. I still like it but the swing trade on it might have to last until January. I expect prices of $12 to $15 by then.
USO still very weak hitting another 52 week low.
I’m going to have an article coming out by tomorrow on buying silver with your IRA. Look for it on the main page.
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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