I’m typing this from the my car so I hope this is able to get through to my blog. I will try to be brief and to the point!!
It is obvious from the chart below, that every man and his dog is going nuts over gold. And if you are a subscriber to our newsletter you would probably realize why. YES there are many economic problems that are continuing and they will not go away quickly like the governments around the world keep saying. Last time a similar event occurred, many people flocked to gold. Those people made a great money, and others learnt a valuable lesson. Now we are just seeing history repeat itself.
Have a look at the chart below.
I have been holding gold for a long time, and have been buying on the big dips so it has been paying off big time. I am also a buyer of bullion and gold coins, which has sort of become a little bit of a hobby now. BUT I MUST TELL YOU SOMETHING VERY IMPORTANT! The way I have been making money on gold is on BUYING the big pullbacks. I feel that this massive move up in gold prices has happened to quickly and caught people in a panic, not to GET OUT OF GOLD, but to GET IN!!!! and quickly. And now we are back at previous highs, and what I would call in a double top area. This can sometimes sound the alarm bells, for a down move.
We are now seeing a double top in gold here and there is a bit of resistance. If you own gold, good for you! but if you are intrested to buy gold for the long term, it is probably better off to wait, as I have been. If commodities come under a little bit of pressure, due to continuing deflation, we could see prices come WAYYY down. But if that occurs, it will be time for you to become a gold shark, and put your money down on the table, as I have described above.
BUYING HIGH AND SELLING LOW, is the quickest way to go broke as an investor. SO remember BUY LOW, SELL HIGH and you cant go wrong. If gold starts falling…say 100 pts or so, we could see more of a significant sell off after. So, BUYER – BEWARE!!! In no way am I saying dont buy gold, but just be careful at these current levels.
I am a bully old boy in Gold at the moment, and I seem to be sharpening my horns as of late. Anyone that knows me understands that I have been buying this bad boy since about the 500 / ounce level. Even back then every man and his dog said there was NO CHANCE it would go higher….WELL sorry to say….IT DID.
If the US dollar goes down the tube, then this is going to do even more to strengthen the current gold prices..Now the pattern in gold is very interesting as of late, and as one of those sneaky yet dainty chartists I had some spare time up my sleeve so instead of getting into other mischievous activities, I thought would help you out and post a quick little analysis on what I think about gold at the moment..
I think this is where I should MOO… and warn you, this is quite boring analysis, but I guess not as boring as the life of a bull!!
Over the last few months we have witnessed some very extreme moments in the markets. But the price of gold today dropped significantly. Recently the positive moves we saw in gold made it look like it was on a major case of ‘high grade’ steroids. These moves took the prices of silver to incredible highs and gold back to around the 1000 dollar level. (seems like a very significant psychological level for investors now)
The reason for the move ? Well, it seemed that every man and his dog was beating the “buy gold today” drum, and it sure did work! It caused a mass buying frenzy…I liken it to panicing kids chasing down the icecream van on a saturday, waving their hands about ferociously, and showing their crisp money notes screaming “WAIT….WAIT!!!”
As an avid investor, I am heavily invested in gold. I have been buying on the dips. You must realise this is one important aspect of making money on the market. The recipe for disaster is buying something that keeps hitting new highs. Remember that saying, what goes up must come down! YES! Nothing ever goes up in a straight line!
Anyway…
Have a good look at the chart below, and you will see what I mean. You see that the gold stock today has broken a major line of support! This means there is a significant chance that both gold, silver and some of the precious metals could be in a bit of trouble now…
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