On Friday, gold, silver and platinum had big rallies; in impressive action, gold was up $25, silver $0.51 and platinum +$31. However, it wasnâ€™t strong enough to reverse the recent downtrend. Gold looks the best and is the most likely to reverse with any kind of rally on Monday.
Silver continues to lag and does not look good. From a value position and investment, I could see buying some physical silver to store. As a trader, this could be a great selling opportunity. This is the point and time you must decide; I will buy physical while still selling paper because the two transactions are not related.
Platinum is the most interesting but is also the most illiquid of the precious metals. On Thursday, platinum attempted to test the flash-crash bottom and rallied nicely over $1,000. It appears to have put in a solid bottom at the $970-$980 level. From a value position, physical platinum appears to be a great buy for a long-term hold.
We donâ€™t predict, create need, or fear but report the facts of what we are doing and willing to do. Buying physical metals is never a bad idea as long as you donâ€™t confuse the purchase as a short-term play. Physical metals are for holding; paper metals are for trading.
In all markets, price action determines what will happen in the next day, week, or month. Keep the two strategies separate. The worst trade anyone can make is turning a trade into an investment hoping for a way out. Traders must learn to take their losses and move on to the next trade.
Patience, discipline, and money management always win the day. Let the map of the markets show you the way.
Join us on the Monday Night Strategy call August 30th at just after 4:30 EST