Gold and Silver are melting
Like the wicked witch from the Wizard of Oz, the precious metals are melting. What most don’t know about the book is the hidden symbolism and relationship to gold and silver. In the book, Dorothy wore silver slippers representing the ideal to free silver, while the yellow brick road was gold.
As we look at the Wizard of Oz and the current state of the precious metals, they are melting. Of course, unlike the wicked witch, gold and silver will mount another rally and continue their history of rising. They will continue to be solid hard asset commodities that may be needed as a currency once again.
The pressure on gold and silver can be unbearable at times, and the talk of manipulation is once again in the forefront. Of course, we will continue to call B.S. on manipulation talk, knowing that the price action and the trend rule the metals. Right now, there is too much weakness no matter what the current state of the economy.
Precious metals should be owned on a physical basis with capital that is not needed tomorrow or anytime soon. Trading should be done with paper, knowing that we can trade either side without emotions.
In all markets, price action determines what will happen in the next day, week, or months. Keep the two strategies separate, the worst trade anyone can make is turning a trade into an investment hoping for a way out. Traders must learn to take their losses and move on to the next trade.
Patience, discipline, and money management always win the day. Let the map of the markets show you the way.
Join me Monday June 20th for our Monday Night Strategy Call at 4:30 est.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
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