Long or short, where are you with your precious metal investments?
Some say there is a lot more upward movement left, others say it’s a bubble. An automotive professional once told me, “there’s a rear end for every seat!” Seems to ring true in the metals market as well.
That is why we are covering, and pointing out a written piece by a contributor for thestreet.com. A correction is on the horizon in precious metals from his point of view, a sharp correction at that. Using charts to back his view, he goes in to explaining why he sees such a sharp correction coming in the precious metals market.
He makes some good points, as I have seen reluctance to buy metals at these prices. I’ve actually seen a lot more shorts this last week than ever before. The statement that really caught my attention, and made me feel it was relevant to the readers of this site was this;
“What I’m looking for is a pierce of the June high that will suck in the rest of the bulls as they jump on the band, and cause all the shorts to cover their positions. This will cause a pop, and once buying starts to dry up the big money will start to sell down the price to trigger the stops and start a multi-day waterfall selloff.”
He is right, there are a lot of stops that have not been triggered. This rise has been straight up so far with no pull backs to trigger any of the stops that were placed on the way up. Any slight down turn and stops will be triggered at every level. Read his full article here;
There’s a catch 22 here, those that will not buy now saying prices are too high, those that own, saying prices are going higher, and not willing to take profits. You can’t have one without the other. If you own metals right now, and are unsure whether or not to take profits, ask yourself… “would I invest at these levels?” You’ll have your answer.
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