Gold is trading lower for a fourth consecutive day amid concerns over the Eurozone Debit Crisis. Looking at the daily chart we can see that it has slipped below the 'line in the sand' 200 period moving average on the daily chart: Chart Courtesy of thinkorswim Price is not far from the support of the 50% retracement level of the swing high/low at 1,652.
I want to buy precious metals, but I feel they are headed lower due to lack of a clear signal for QE ("sterilized bond purchase").
When I first started buying gold it was at an all time high of...get this...$930 per oz. (seems pretty low now) That was just over 2 years ago. I still havent sold my gold because the price is way way way too low. I only buy silver right now because its an even better deal than gold right now. If you are going to buy precious metals, buy in this order #1 Silver #2 Platinum #3 Gold Just a year ago this time, gold was about $1400 per oz. A year before that it was $1100 per oz. Now its $1700+ per oz. Its a good bet gold will continue its journey to $2,000 per oz by this time next year at least. I heard so many people on this board say how gold was going down at so many price points. I remember one specific week where it hit an all time high of $1,200, and then dropped something like $80 in a single day. The bears on this board came out like cockroaches telling everyone gold was going even lower, even below $1000. It didnt happen though. Every time gold has a big drop, thats when you buy. We just had a big drop and its time to buy again as we will probably be at $1800 in a month or two.
========== Good points; silver, SLV is in a nice 2 year uptrend & nice longer uptrends. But so many trends on a 6 month silver ,SLV chart; so many trends on a 12 month chart are down, stiil looks like its going down. And sell volume , sell price are notably better[bearish] on 1 year chart. Silver sales/dealer, called me up recently; long story short i mentioned i liked silver... but reminded him of a book he sent me ,of a bear with a silver bar in his mouth.LOL Not a prediction, simply probabilities; it seldom pays me to ignore a 1 year chart... Even though average small scale in buy at these levels could be wise; especialy if ones loads up @$ 25...,20...15...$9.99. Even if it never makes $9.99, $25 & 20 area looks better...