Gold Market Wire
News, analysis and commentary for gold traders and investors
Silver Market Update
Silver Gaps Higher
August 24, 2021 - (Gold Market Wire) - Our reversal, which we pointed out yesterday has followed through nicely today - turning into what looks like a proper gap up. Roughly 20 cents above we have a fairly important horizontal marker around which the market has pivoted before.
In the interest of discipline and our continued triple long in Silver - Core, leveraged position and spec; we will now eliminate the spec position for a solid profit. We are carrying weight and its the easiest way to lighten up, and profit-taking is always a fun habit. Our core remains pocketed as core should, but it is always worth noting that the market requires an ever fresh perspective. When we cut our core position for a profit, offsetting (easily) the hit we took on our trading position, we did so in the new-found perspective that a serious draw-down was developing. Keeping an open mind worked out well, and we re-established our core position at $1.40 better than its previous initiation. Sometimes the rule book has to be altered, especially when its time to bail. Escaping carnage is a large part of trading. Trying to be stubbornly "right" is not.
As we approach the horizontal magnet, it will be interesting to see if we can clear it. If we don't get a defining burst through, we may decide to lighten the trading position slightly. We shall see when we get there.
The bullish tenor of the market is being maintained, no doubt, by the horrific comedy of errors that the Biden administration is exposing the world to every day. Add to that the beginning of what is likely to become a proper civil war in Australia, and one can be forgiven for speculating that we are at the start of a truly momentous period of change in the world's history. That will help the metals. There is little doubt. It will not be a cause for celebration, however.