Saturday , 20 October 2018


Is It Finally Time To Buy Gold And Silver?

Gold and silver have been exceptionally weak this year. Is it finally time to buy gold & silver?

The original article has been edited here by munKNEE.com for length (…) and clarity ([ ])

From a short term perspective, this is about as bad as it gets for gold (historically).

Here’s a very important point that I want to illustrate. Commercial hedgers are now long gold for the first time since 2000. (Gold began a massive bull market after 2000).

Some people see this as a long term bullish sign for gold. I don’t. Commercial hedgers were consistently long gold during the 1990’s while gold swung sideways in a big range. Gold and silver are increasingly showing signs that are characteristic of these long sideways consolidation patterns.

Conclusion

  1. Gold’s short term outlook is bullish.
  2. Gold’s long term outlook is a 50-50 bet.

Here’s another interesting point. Look at the dates from this study. While the U.S. economy was typically in the late-stages of its economic expansion cycle, inflation didn’t go up significantly over the next year.

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