Gold - Setting Up For Another Leg Higher?
Gold continues to show a strong bullish leg and where we expected a pullback, the market simply took that level out. Yet we are approaching a significant broader term resistance level at 1366, so there is still some room to run here?
There are numerous EW patterns that are still in play here and this is just one of them. Do not ever think there is not another wave count that is applicable. What we look for is confirmation of our projection and gold taking out the 1345 confirms the count, or in short makes it a higher probability that the broader move is not over yet. We have revised our mid term target for gold in the 1370-1390 and our broader term target taking out the 1400 level. For months we have been mentioning that it is a good time to stack gold and silver while the market views it out of favor. At this time gold is not at a price I would be stacking but silver still is.
The gold silver ratio is still at historical highs, which for the longer term investor and stacker can provide an option of buying silver here and when the market rebalances itself, flip into gold. In otherwords: If I were to sell one ounce of gold, or trade it for silver I would get about 83 ounces of silver. When the market comes more into line with the historical gold silver ratio, say around 50, I could trade 75 ounces of silver getting 1.5 ounces of gold and still have 8 ounces of silver. This is a long term trade and nobody will get rich overnight, but over 10-20-30 years these little adjustments compound huge for returns. In addition you are never out of the metals market just adjusting your portfolio for future gains.
In closing whether it is this year, next or 2025 gold and silver will once again have their heyday. Will you be in a position to make that a payday or chasing after a train that has already left the station. Silver is still a buy in my opinion and I favor it over gold based on the gold/silver ratio.
There are numerous EW patterns that are still in play here and this is just one of them. Do not ever think there is not another wave count that is applicable. What we look for is confirmation of our projection and gold taking out the 1345 confirms the count, or in short makes it a higher probability that the broader move is not over yet. We have revised our mid term target for gold in the 1370-1390 and our broader term target taking out the 1400 level. For months we have been mentioning that it is a good time to stack gold and silver while the market views it out of favor. At this time gold is not at a price I would be stacking but silver still is.
The gold silver ratio is still at historical highs, which for the longer term investor and stacker can provide an option of buying silver here and when the market rebalances itself, flip into gold. In otherwords: If I were to sell one ounce of gold, or trade it for silver I would get about 83 ounces of silver. When the market comes more into line with the historical gold silver ratio, say around 50, I could trade 75 ounces of silver getting 1.5 ounces of gold and still have 8 ounces of silver. This is a long term trade and nobody will get rich overnight, but over 10-20-30 years these little adjustments compound huge for returns. In addition you are never out of the metals market just adjusting your portfolio for future gains.
In closing whether it is this year, next or 2025 gold and silver will once again have their heyday. Will you be in a position to make that a payday or chasing after a train that has already left the station. Silver is still a buy in my opinion and I favor it over gold based on the gold/silver ratio.
