Thursday, September 22, 2011

PM Sell off....getting ugly

With the fed's 'twist' program (400 billion) and Obama's 447 Billion jobs program, both Gold and Silver should be in rally mode.  But hold on, some big banks need to cover their short positions... <-speculation.

Silver was off 11.19% just today to a closing price of ~$35.94, right at the 200 day moving average. It pierced right through the 23.6 fib level and the lower trading range box.

Gold was off 3.78%, -$68.30 and is still within a trading range between $1700 and $1900. Nothing to be alarmed about, especially after the run-up in July from $1478.

If you are not on margin on anything, there is nothing to worry about. After this sell-off, I'm expecting the PM's to be in rally mode towards the end of the year. The turn of the month may be the 'trigger'...?

The fundamental's haven't changed, there is more worldwide fiat debt now than ever before. And governments will continue to 'print' in a feeble attempt to fix a debt problem with more debt. As mentioned in a previous post, it's just a matter of time before all of the fiat chases tangible assets. When people are looking for safe haven, Gold will be the only game in town.  Silver will follow and there is not enough of it around fore everyone.

Looking back on these charts one year from now will show everyone that times like these are buying opportunities.

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