As an investor, what matters to you more than anything, what is of paramount importance, is determining whether what you have invested in, or are thinking of investing in, is going to go up, down or sideways. If you are long you want the market to go up, if you are short you want it to go down, and if you have written both Call and Put options, you want it to move sideways. All consideration of fundamentals is subordinate to this Prime Objective and take the maximum advantage of
Understandably, many investors in the sector are growing increasingly fed up and frustrated with this situation, especially as every time the sector looks set to break higher it has suffered a smackdown. The purpose of this essay is to assess the current situation and to discuss effective tactics for dealing with it.I think buying the metal is different from buying the equities or futures or options positions, because by buying the metal you can hardly go wrong. Certainly there was a push into the metals in 2008 where we peaked out-silver above $21.00 and gold over $1,000.00.Longer term, I think we're going to see far higher prices in both metals. Having said that, I think the best approach for the physical metal is just dollar cost average. Just discipline yourself to buy so many dollars' worth of gold or silver or both, each and every month. This approach provides you a very good price basis as these metals continue their upward path. This same technique can be used if you own a gold mutual fund, but I do not advise it for individual stocks.
If you go back to the last bull market in the metals, to 1980, the country was in better shape than it is today. The debt problems and the ability to service the debt have become a very big concern. We're seeing this in the mainstream financial press. China basically has enough U.S. dollars and is looking for an alternative. Russia's saying something similar. Japan is concerned. Most everyone who holds our debt is concerned.Financial assets have actually come down substantially from when the credit crisis started in 2007, but they are making a brief rally here and personally I think it is about over and again silver increased in 2009. More important than money and more important than ownership of a business is what is the physical economy actually doing, because this is what is required for all of us to eat, have shelter, and make a living. And that has been deteriorating in real terms since about 1968 in the United States of America. You might get some controversy on that statement, but the facts are there, if you look, on an inflation-adjusted basis.
the commodity market.Gold, Silver and Precious Metals stocks have been trading sideways for about 9 months now, following their strong advance to the April - May peak of last year, with many smaller stocks having slithered down a "slope of hope" to plumb low levels in the recent past.Understandably, many investors in the sector are growing increasingly fed up and frustrated with this situation, especially as every time the sector looks set to break higher it has suffered a smackdown. The purpose of this essay is to assess the current situation and to discuss effective tactics for dealing with it.I think buying the metal is different from buying the equities or futures or options positions, because by buying the metal you can hardly go wrong. Certainly there was a push into the metals in 2008 where we peaked out-silver above $21.00 and gold over $1,000.00.Longer term, I think we're going to see far higher prices in both metals. Having said that, I think the best approach for the physical metal is just dollar cost average. Just discipline yourself to buy so many dollars' worth of gold or silver or both, each and every month. This approach provides you a very good price basis as these metals continue their upward path. This same technique can be used if you own a gold mutual fund, but I do not advise it for individual stocks.
If you go back to the last bull market in the metals, to 1980, the country was in better shape than it is today. The debt problems and the ability to service the debt have become a very big concern. We're seeing this in the mainstream financial press. China basically has enough U.S. dollars and is looking for an alternative. Russia's saying something similar. Japan is concerned. Most everyone who holds our debt is concerned.Financial assets have actually come down substantially from when the credit crisis started in 2007, but they are making a brief rally here and personally I think it is about over and again silver increased in 2009. More important than money and more important than ownership of a business is what is the physical economy actually doing, because this is what is required for all of us to eat, have shelter, and make a living. And that has been deteriorating in real terms since about 1968 in the United States of America. You might get some controversy on that statement, but the facts are there, if you look, on an inflation-adjusted basis.
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