Some may think me mad saying the Silver and Gold machinations are a fun ride but come on…how often have you had so much action? There have been times that the metals would put a meth addict to sleep.
The drop on Friday Jan 30th was significant but was it fatal? NO!!!
Nothing in the fundamental picture has changed, in fact it looks even more likely for new all time highs to return and maybe sooner rather than later. Ig Gold was a good idea at $5500/ounce isn;t it logical to consider it an even better buy at $4500/ounce?
My best guess is that there were big shorts etc. in the market and they used options expiration to close out their losers. Manipulation you say. Well, DUH!!! There may also have been longs who saw profits and took them. Late in the day the Chinese run on their own public owned Gold hit the wires so that may have had an initial effect having begun before the US markets opend on Friday.
I am looking for opportunity here and might even will add some physical to hold nearby. Then again, the metals stocks look even better so that might be the best play from here. My favorite Gold Fund EPGIX was hit pretty hard but I will hold and not add to it. My SILJ was demolished for now but the Silver in the ground hasn;t gone away.
Try to accept that this drop is an opportunity not a disaster. Percentage-wise it was just 8% for Gold and about 12% for Silver. These fast moving markets can sustain that and then some. Watch for a slower return to new all time highs over the next few months. Slower is actually better so don't resist it. It is never a good thing to have parabolic moves though they are a fun ride and something to behold.
I had taken some profits in Silver along the way but still have about 50% of my holdings in place plus 100% of my Gold is lazily basking in the sun, so bring it on!
Good Luck to all.
Best,
Donn Marier
DM-Your Own CFO