Gold Market Wire
News, analysis and commentary for gold traders and investors
Gold and Silver Update
Precious Metals Follow Through
November 11, 2021 - (Gold Market Wire) - It may sound like hyperbole, but as of yesterday, we are entering a new phase in the Gold Bull Market. It is likely to be the strongest, and also the shortest. When we get to this stage, we probably have less than 3 years to run until the finish, although the question becomes open as to what happens to precious metals in the long run.
Yesterday was a momentous day. The CPI news - 6.2% higher year on year - has pushed the market hard, and this European a.m. it has gapped up and is pushing higher. This is a bull market in full flow. Only massive rate rises on the short end of the curve could slow the market down now - and the damage that would happen as a result of that would be significant. We are entering that phase where the irredeemable nature of a sovereign debt crisis is about to rear its ugly head.
Starting with Silver:
Both charts are highly bullish and the race is now on to close in on $30.
The Gold picture is similar.
And that, as they say, is that. The bull is charging, but we should not expect a straight line up. In fact, the volatility is likely to be wild. That means holding core positions close, and taking profit along the way. Those with deep pockets and experience (not to mention fortitude) can buy the sell offs in an increasing, scaled-down manner. That is the test of real discipline. Temptation to go 'all-in' will be everywhere. As we enter this phase we will only recommend only one piece of sage advice. While length is the place to be...avoid chasing strength. Be patient and wait for sell-offs - you will get them. Nothing moves in a straight line, and if you chase strength you will be whipped around in the market and wind up empty handed when you get stopped out and the market reverses. If you know how to manage risk, legging call spreads is a solid idea. This should be an interesting time for trading, but there are many pitfalls to avoid.
Today's discipline means buying lightly on pullbacks. In Gold terms it may be unlikely that we see $1800 again any time soon. If you insist on a leveraged position, do it at the outset of the big run, not six months from now, when you are "convinced" we are going to $10,000.