Will gold ever break through $1,300/oz? Will silver ever clear $18.00/oz? Since the battle for $1,300 and $18 started, it seems like everytime the precious metals gain momentum, they get slammed right back down, ruthlessly (around this time of day too, I might add, so today’s graph looks just about right to me)…
The climb up is so slow and steady, but the fall back down looks like a straight-shot plunge into the abyss (with a subtle dead-cat bounce thrown in for effect)…
What do you see from that chart? I know what I see… I see a lot of paper…
Oh well, try again tomorrow, I guess…
Hang in there precious metals investors!
We will have our time in the sun, sooner rather than later, I suspect.
Haha I hear ya. I haven’t sold my gold stocks yet after gaining 50-130% during 4 months of holding. I think they may triple or quadruple once the gold hits $1400-$1500. Can’t wait!
BSR
BSR,
Wow, those are impressive gains! Yeah, I wouldn’t sell quite just yet either, I think we are just getting started. Agreed, once we clear $1,300 or $1,400 it’s off to the races.
Take care!
I read the recently released book “The New Case for Gold” by economist James Rickards. He asserts China, through secret gold purchases and market manipulation, is keeping gold prices down. I won’t go into the details about why China is buying gold, or the mechanics of how the price manipulation is carried out, but the important thing is that China obviously wants to keep the gold price low while it’s in accumulation mode. As an aside, I saw in yesterday’s WSJ that China just bought a huge gold vault in London. The New Case for Gold is an excellent read,… Read more »
chillywit,
I’m a big fan of Jim Rickards, haven’t read the latest book yet, but have the previous two. That makes sense to me, when you are a strong buyer, you want prices as low as possible. Sooner or later, especially with negative interest rates, gold will be fully unleashed. As investors, we just have to sit tight and wait for that moment to arrive. It will be pretty epic…
Cheers!
Looks like a possible Fed rate hike in June is to blame for today’s dip.
We might see added volatility (up/down) in the sector for the next few weeks.
Mike,
Yup, I’m actually looking forward to more volatility. If the stocks drop enough, I may add some more… It’s been a long while since I was able to find any gold stock that was affordable (relative to my previous cost basis).
All the best!