Folks, there are a lot of articles on Gold already and how it is going to skyrocket to new highs. Logic to my mind is old and driven by momentum. While gold has stayed above $1362 level for more than 3 consecutive days, it may be safe to assume that $1362 has now become a support level from the earlier resistance level. However, I pay attention to two points which help maintain my sanity or rather should I say avoid the emotional downturn when it doesn't hit the trajectory that everyone wishes for. I am presenting these two points below for your consideration and for you to comment.
- While the general argument has been that silver always lag gold but if you follow the ticks in gold and silver you would notice something peculiar and that is that while gold has been ticking higher, silver actually has been ticking lower at time. Even if you take a 100:1 ratio for silver to gold, the move in silver is just not following the normal scenario of it going up because of global uncertainty. And there is plenty of uncertainty as the media portrays. So, the conclusion that I draw is that the fake news is at works again and silver will rise when there really is some uncertainty.
- Today's smackdown of Gold to $1426 from a high of $1442 is a sign that someone doesn't want gold to rise as fast it has been. But it also tells me that the time when the containment fails might not be too far off. Now don't jump to the conclusion that it is going to rise dramatically in the next few weeks/months. The action merely tells me that if you are a believer in gold and silver then your belief will bring results and all the insults that been heralded your way in last 8 years will be repaid with interest. So do stay strong. After all, there was a reason you believed in gold and silver in the first place.
With regards to cryptos, the action certainly is more positive. I don't believe it is going to go straight up from here and now, but I do believe that even if there is a bit of profit taking it has an upward momentum that will be difficult to contain.
With that and as I always say, be prepared and be safe!
Leave your comments below on what's your take on current movement of gold, silver, and bitcoin.