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1. Most investors get involved
in the market to book profits on trades and to build wealth on core
positions. A focus on both cash and physical gold is the best way to achieve
your goal. Click here now to view the GDX daily chart.
2. The price congestion blob between approx. $52 and $64
is still in play, and what might be occurring now is a simple pull-back
before price blasts up and out of that price box, like a golden jumping bean!
3. There are some sell signals being generated on the
oscillators, but if you look at those signals in isolation and ignore the 6
months of price congestion you could find yourself sitting holding the US
dollar bag, while price blasts higher.
4. GDX trades in dollars. If GDX rises when the dollar is
stable, you build real wealth. When the dollar is fundamentally weak, as it
is now, it is less clear as to whether a rise in GDX is a rise in your
wealth, or just more failure of the dollar.
5. Click here now to view the GDX weekly chart. Some technicians may tell you
there is a double top on the weekly chart. I've highlighted their substantial
fears with green circles. I don't see that as a true double top because the
length of time between the tops is too long, and some oscillators are
flashing buy signals rather than sells. Still, if you are concerned that a
fall in GDX price could trigger fears in yourself, or fears in those whose
monies you manage, my suggestion is, "go to gold bullion, not
to cash!".
6. GDX could move more against the dollar than gold
bullion could if we blast higher, but if a panic in the dollar were to
develop, it is unknown what effect that could have on the GDX price. As the
crisis accelerates, so does the resiliency of gold bullion during any market
panic.
7. We are near the point where market panics will drive
gold higher, not lower.
8. This strategy of going to bullion should be applied to
all sectors of the gold market. Silver is gold's "wild little
brother". Silver/gold ratio traders may not fare so well in this bull
market. A quadrillion dollars of marked to model OTC derivatives makes this
crisis different from all others.
9. Ratios that worked in past crises may not apply this
time because so many facts are marked to lies. My suggestion, from the
beginning of the bull market, has been to utilize a silver to gold transition
strategy aiming for a final 70% gold to 30% silver holding.
10. Use the gold/silver price ratio to buy and sell around
those weighting boundary lines, working to build more ounces of both gold and
silver.
11. The 70-30 weighting gives you a balance of risk
management and reward action that is almost impossible to beat, regardless of
any up or down movements in the gold to silver ratio.
12. The simplest answer to your current
"problem" of huge profits in silver is to book your profits in gold
bullion currency, not dollar currency. When silver is "too high" in
your mind, buy gold, not dollars. As the crisis intensifies, so does the
payoff of going to gold instead of dollars, in any market crash situation.
13. As always, all I tell you to do, is all I do myself.
Go for the gold bullion, not the photocopier machine. If you want to get
richer!
14. Click here now to view gold's little brother in action . You are looking at this
morning's silver market. Silver has rallied almost a full dollar from last
night's lows.
15. Take a look at this long term monthly silver chart. How can any rational investor
buy silver now into any price weakness against the dollar, looking at the
overbought situation on the chart?
16. The overbought situation is extreme in terms of the
level of the indicators, but not in terms of the time the indicators have
spent in the overbought zone.
17. Major assets can stay overbought on monthly charts for
many years. Only by buying some gold with profits from some
silver can an investor remain exposed to the metals bull, while
professionally booking profits on silver.
18. With any major asset, never go to a position of 100%
hedged. Buy put options for insurance. Going to 100% cash is a
strategy best equated with going to 100% insanity, in a quadrillion dollar
OTC derivatives crisis.
19. Click here now to view the daily silver chart.
20. Notice the one-day reversal that occurred yesterday,
along with a huge array of massively overbought technical oscillators. Silver
traders are faced with the choice of moving to dollars or moving some to
gold.
21. As always, the course of moderation is the most
rational, and generally the one that builds the most consistent long term
wealth.
22. There is a real possibility that silver traders could
panic if silver began to decline against the dollar, but find themselves
jumping from the frying pan into the fire, as the US dollar goes into a
crisis.
23. Can you seriously imagine being all in cash
as a global institutional dollar panic occurred? It would make the day of the
Dow lows at 6500 look like child's play.
24. There is also the "risk" that silver does
not fall, but instead works off the overbought situation in a series of small
corrections or a consolidation. No matter which way you turn, you are faced
with the fact that if you are either afraid for silver or simply want to book
profits, the choice of champions is to book those profits in gold bullion
currency!
Special Offer For Website Readers: Send me an Email to freereports4@gracelandupdates.com
and I'll rush you my free "Marked To Lies" Report. Learn the basics
of OTC derivatives and why Quantitative Easing has done nothing to halt the
cause of the crisis. I'll include my oil to natgas trading report, so you are
equally fearless about buying "too high" oil at over $100 barrel
while buying natural gas that seems like it will never crawl out of the
gutter! Thank-you.
Thank-you
Cheers
St out!
Stewart Thomson
Graceland Updates
Email: stewart@gracelandupdates.com
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