Only a fool invests in precious metals. Gold and silver are a hedge and not an investment. You buy gold and silver for the same reasons you buy fire extinguishers, guns, and ammunition.
You buy them because you might need them, not because you plan on selling them someday.
So why are those “we buy gold” people still standing on the street corners?
Yeah, how silly to buy PMs when there are all those perfectly sound fiat currencies to invest in and that sound stock market that is such an accurate reflection and predictor of the economy.
The paper manipulators are careful not to short the price down into this area, or they would end up selling literal tons of Gold which they simply do not possess.
Physical PMs are a terrific investment. The paper 'froth' on top of it - however - is a dangerous, fraudulent trading environment. Buy your PMs of choice and keep them close: but don't bother trading the paper versions.
I knew when I got three calls from bullion dealers yesterday that danger was approaching. I sold 1/3rd my gold at $1750, think we could see sub-1600.
I’m just sitting and waiting for now. Usually right at the start of the year or later in the year is the weaker time, better time to buy.
Have no fear. If the April close is below the June of last year close, go to cash. Move forward each month.
If a sell is triggered, chances are it will be a whipsaw and you’ll have an opportunity cost as you buy back at a slightly higher price the following month.
But there’s a 20% chance or so that you’ll avoid the big drop and be able to buy back at a 50% discount in a couple of years. The black swan effect.
This presumes you are in something liquid like futures or GLD ETF. This may not work on physical metal if the transaction is costly.