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.
9-22-2014 GLD Chartv
9-22-2014 SLV Chart
9-22-2014 JNUG Chart
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About Doug EberhardtDoug 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
Disclosure:
Commodity Futures Trading Commission Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with capital you can’t afford to lose. This is neither a solicitation nor an offer to Purchase/Sell futures or options. No representation is being made that any account will or is likely to achieve gains or losses similar to those discussed in this outlook. The past track record of any trading system or methodology is not necessarily indicative of future results.
All trades, patterns, charts, systems, etc. discussed in this outlook and the product materials are for illustrative purposes only and not to be construed as specific advisory recommendations. All ideas and material presented are entirely those of the author.