Gold - is it time to buy, sell, or hold?
Europe has joined the trillion dollar printing club, and the US stock market is lower than the one off flash crash seen on May 6th. With so much uncertainty, one this is certain - the stakes in the markets and the global economy has a whole has never been higher. The natural force of economic deleveraging is powerful, but also faced with an infinitely powerful monetary tool - the printing press.
The volatile decisive indecision of the markets has made it hard to read - such that even the experts are perplexed as to what the direction of the Dow is. One day up 200, and the next day down 200. While many are ready to jump ship from the general stock market (or already have), those same traders are trying to time the gold and silver markets.
On one hand gold is off its highs of $1250, and in a seasonally weak period. So some are hoping to pick up gold bargains at lower prices. There is also concern that a sharp correction or crash in the stock market could drag precious metals with it.
On the other hand, both gold and silver have held up exceptionally well against any correction causing some investors to buy into any price given a reasonable fear that they could launch higher soon. What if gold never falls below buying targets of $1100 or $1000?
For the long term investor who can't predict the short term swings the answer is simple. Don't buy in a single shot. Spread out orders over a period of time in a pyramid structure. If you buy 100 ounces of silver at 17, plan on buying 200 ounces at 16, and 400 at 15. This strategy will reduce risk, and give you more time to react to unpredictable events.
The volatile decisive indecision of the markets has made it hard to read - such that even the experts are perplexed as to what the direction of the Dow is. One day up 200, and the next day down 200. While many are ready to jump ship from the general stock market (or already have), those same traders are trying to time the gold and silver markets.
On one hand gold is off its highs of $1250, and in a seasonally weak period. So some are hoping to pick up gold bargains at lower prices. There is also concern that a sharp correction or crash in the stock market could drag precious metals with it.
On the other hand, both gold and silver have held up exceptionally well against any correction causing some investors to buy into any price given a reasonable fear that they could launch higher soon. What if gold never falls below buying targets of $1100 or $1000?
For the long term investor who can't predict the short term swings the answer is simple. Don't buy in a single shot. Spread out orders over a period of time in a pyramid structure. If you buy 100 ounces of silver at 17, plan on buying 200 ounces at 16, and 400 at 15. This strategy will reduce risk, and give you more time to react to unpredictable events.