-- Posted Thursday, 21 January 2010 | | Source: GoldSeek.com
The market is not going to open for another hour and a half as I begin this short piece, but I already have a good idea of what will take place with gold today.
Many writers and analysts are being bombarded with panicked calls and emails these past few days. I understand and have been through that before. It’s no fun. I’ve tried to educate my subscribers and readers about the way markets work.
I am proud to say I’ve only received a handful of panicked emails since I constantly remind readers about the ups and downs of markets, and to look at the big picture, especially when investing in physical metals since they are not quite as easy to trade as clicking a mouse.
I’ve said over the past few weeks, even in the face of a rising gold price that I expected a pullback to the $1,100 level. That occurred in the wee hours this morning.
It’s no small coincidence that Goldman Sachs just so happens to be reporting their earnings today. Make no mistake, they are one half of the man behind the curtain. And that curtain is being slowly lifted.
Many people are wrongly panicked by this small move lower in gold. It’s healthy action in a bull market. Enjoy the chance to buy if you are looking to, otherwise welcome this respite. We humans have to both inhale, and exhale. So do markets, this inhalation will lead to another healthy day in gold’s bull market.
Over the past few weeks I’ve mentioned that gold needs more time before mounting the next half of this move higher. It will move to $1,500 by spring there is no doubt.
I said late last year that it was also my belief that silver would be outperforming gold and leasing it into this second leg of this move higher. My work is telling me that silver will have to break above $21 before gold breaks above its recent high of $1,226. My target for silver on this move by spring is a minimum of $26. That makes this mornings price of $17.61 a very attractive looking proposition.
Neither gold, nor silver’s moves will be straight up, and there will surely be days like today where you question your judgement. But the fact remains that the bull market is healthy and rages on.
In my year end wrap up for subscribers I posted many ten year charts. The action the past few days would not even show up on those since they are monthly charts. But rest assured there were many tough days like these and much worse over the past ten years.
These days are needed and do not matter in the big picture. Life is short in some ways and long in others. Don’t sweat the small stuff like a precious metals investment just yet. We have years to go, and it will always be worth something.
It’s a rare event for me to share this information publicly and my subscribers had the heads up last week on this potential trade, but it’s a new year, a new decade and a new phase in my life so below I share a near perfect trade that is lining up perfectly over the next few days. Please don’t fill my inbox with questions and whatnot. All the usual disclaimers apply or as one commentator is so fond of saying; you don’t share your profits with me so don’t share your angst in your losses with me either.
But feel free to share your stories of profits with me, that always makes me smile!
As always this index depends on the price of gold. But if gold can hold here and begin to move higher again then this index should move up quickly. My target is a minimum 185. I will be likely be buying a few options today or over the next few days once the Slow STO indicator flashes me a buy signal. I will buy options that are out a few months, and I have yet to decide on the strike price.
Don’t ask me for specific numbers or months, that’s your choice. Until this weekend I bid you a fond good-buy!
In my free, nearly weekly newsletter I include many links and charts which cannot always be viewed through sites which publish my work. If you are having difficulties viewing them please sign up in the left margin for free at http://www.preciousmetalstockreview.com/ or send an email to warren@preciousmetalstockreview.com with “subscribe” as the subject and receive the newsletter directly in your inbox, links and all. If you would like to subscribe and see what my portfolio consists of please see here.
Until next week take care and thank you for reading.
Warren Bevan
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-- Posted Thursday, 21 January 2010 | Digg This Article
| Source: GoldSeek.com
