Is the Correction In Gold And Silver Over?
Stock markets are tumbling from Japan to Wall Street. Already shaky Spanish and Italian financial instruments are quaking in their fancy boots as Greece does not make the cuts needed to be able to receive financial assistance. Vladimir Putin, a prototypical example of a classic Russian Bear says that the American Bull has blunted horns and suffers from impotence. He states, "Americans are living beyond their means and shifting the weight of their problems to the world economy...They are living like parasites off the global economy and their monopoly of the dollar." China joined Putin by calling the brouhaha in the West as "madcap brinksmanship."
The scepter of fear is haunting the fiscal world from West To East. International turbulence is precipitating a search for safe havens. Treasuries (TLT) are hitting new highs, the U.S. dollar (UUP) has bounced versus other currencies, commodities (DBC) are being sold off and gold(GLD) and silver (SLV) bullion's volatility has increased significantly.
These actions are signaling a notice of caution in an economy which is in desperate need of jobs. It is not only the debt crisis, it is the DEBT. The world is worried. No country including the United States can long remain a global factor when dollars are being squirreled away at close to 0% interest in cash and long term treasuries. This capital should be productively used to build factories, mines and mills.
Dormant dollars and treasuries are not exactly the B12 injection that the old bull needs. Do not be surprised as unemployment soars that the Fed at its upcoming meetings does a reprise of the show from the summer of 2010. It may not be a stretch to think that all of these developments may be programming us for Chapter 3 in an ongoing series of quantitative easing to try to stimulate job growth and to stave off a deflationary spiral as Operation Twist was a dud.
By now our readers should realize that it is specifically those sectors representing wealth in the earth resources such as the gold (GDX) and silver (SIL) miners that will prove to be areas of sizable payouts in times to come. Our sectors represent buys of a lifetime as the global economy is in convulsions.
It must be realized that not all wealth in the earth sectors move synchronously. Gold and silver are unique in that over the centuries they move from peaks to valleys and back again with breathtaking volatility. An examination of historic charts reveal that despite the ongoing roller coaster the precious metal arc rolls upward.
Right now, gold(GLD) has achieved our long awaited pullback to the $1600+ area. Our firm recommended taking partial profits in a percentage of our holdings in gold before this pullback. It appears to be a prudent move as we witnessed a short term decline. Now may be a more propitious time to reenter at oversold conditions and after a healthy correction.
Tweet
Author: Jeb Handwerger
Jeb Handwerger
http://goldstocktrades.com
I started reading charts at eleven years old. One day my father, a market trader and technician found his library of books on technical analysis mysteriously disappearing. He later found the textbooks under my bed. For many years day and night I studied technical analysis and charting, working and learning from my father who has over 50 years of trading experience. Technical analysis is my passion and love.
In 2001, I started noticing the junior mining stocks and gold as having a tremendous upside. For the past 9 years I have researched many juniors and have identified the major winners using technical analysis and finding top management.
I earned a Bachelors Degree in Mathematics and a Masters Degree. I learned most of my technical analysis from the school of hard knocks, managing real money for myself and for my family.
Constantly perfecting my craft, I have traded for two decades of success in many different markets. I have been asked to post ideas to some of my students who have taken my course in charting and technical analysis. I have made an excellent living trading stocks for myself.
We are offering ideas for your consideration and education. We are not offering financial advice. None of our content is provided to invite or encourage any person to make any kind of investment decision. We are not financial advisors. We advise you to consult with a professional financial and investment advisor before relying on any content.
We are sharing our ideas for educational and informational purposes only. You must do your own due diligence and are responsible for your own investments.
Companies that are followed in our premium service may become sponsors on Gold Stock Trades and/or our free or affiliate websites to distribute press releases or corporate updates for a monthly fee on our free website. From time to time, Gold Stock Trades and its directors, officers, employees or members of their families, as well as persons interviewed for articles on the site, may have a long or short position in securities mentioned and may make purchases and/or sales of those securities in the open market or otherwise. Please see our list of current sponsors and featured companies for any potential conflicts of interest.
Some information in our content can be construed as forward-looking statements. Forward looking statements are uncertain and actual results may differ from our expectations. We seek safe harbor.
By reading this disclaimer you will not hold responsible any person associated with http://goldstocktrades.com responsible for any losses that may occur from trading based on this information. If you do not agree with the terms of our disclaimer, do not access our website or content, and unsubscribe if you are already a member.
Sign up for my free newsletter where I will post my "up to the minute" ideas and analysis of the markets. Comment and ask questions as we are all learning and growing. Empower yourself and learn how to anticipate opportunities.
All material on my newsletter and blog is copyrighted.
Please contact us here with any questions, comments or interviews.
Copyright © 2010-2013 Jeb Handwerger
Circle Us