Gold/Silver going down hard
Posted by Frugal on September 11th, 2006
I never saw anything like this before. Silver spot gap down opens at $11.00 exactly and flat-lined for almost 11 hours. That’s almost a 10% drop. I think it’s trading at HongKong market, but I cannot understand how such chart can come about.
Looks like gold/silver stocks will have a really bad day. After a false breakout last Tuesday, HUI seems to be falling really hard. The “false” breakout did happen on a very strong volume. I’m not sure what’s going on in the marketplace. Looks like manipulation to me. A flat-lined silver is not a free market chart. Unless Kitco’s chart has incorrect data, otherwise I cannot explain such behavior.
OUCH, today is going to a really rough day for my portfolio.
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September 11th, 2006 at 12:44 pm
It seems to me that right now would be the time to back up the truck and load up on silver, if one remained a true believer. I know you have cash reserves. Are you going to buy more now? I was seeing headlines today of the commodities super bull being over.
September 11th, 2006 at 12:56 pm
I later found out that Kitco’s chart had some technical difficulties, and that was the reason for flat-lining.
I did buy more today and some small bites last Friday. But the market is falling so hard. I am giving up pretty much for any further buys.
It is scaring me totally.
My cash reserves are dwindling. I’m not going to waste more bullets. September is not over yet, and there is October still. These two months are historically the bad months for equities. I don’t know how bad it will be.
The biggest problem right now is that $CRB index has fallen through 200 days MA. And have not shown signs of life yet. That is beginning to worry me. I don’t know whether we will be in the stage #6 of all deflations as Martin Pring has talked about.
Just be careful.
September 12th, 2006 at 7:47 pm
Fear not! Gold held support at $585 and Silver is the play longer term.
These are the ultimate in volatile trading markets. But, precious metals represent much mcuh more than just the boom in commodities. They represent currency and protection and a whole lot more.
September 12th, 2006 at 10:00 pm
Thanks Larry.
I understand about the long term values of precious metals.
The short term market action is scaring me out though. CRB is falling like a rock. That doesn’t seem to be a good sign to me at all. Martin Pring has said that gold will probably go into intermediate correction for 6 to 18 months. I’m starting to think that maybe he is really right.
September 16th, 2006 at 3:22 am
the message it ate was me asking you why oils and gold? well.. WHY OILS AND GOLD?
September 16th, 2006 at 7:30 am
About why Gold, check out “Reasons for investing in gold/silver”.
On why oil, check out “What is Peak Oil”. I will have more reasons but I haven’t had time to get to them yet.