According to Larry Edelson | Wednesday, March 9, 2016 at 7:30 amSilver from a low of $13.62 (nearest futures) last December to a recent high of as much as $15.99.
Everyone and their brother now thinks that gold and silver are headed to the moon. All because they’ve had a decent rally of late. Gold jumping from its low $1,044 last December (nearest futures) to as high as roughly $1,268 recently …
And truth be told, gold and silver have indeed most likely bottomed, right on target with my forecast for last year, to bottom in late November/early December.
So why am I panning gold and silver now? Actually, I am not. I am panning all the pundits and investors out there who now say gold and silver are headed straight up to new record highs … and that if you don’t buy now, you’ve missed the train.
Nothing could be further from the truth. You have not missed the train. But what I do NOT want you to do is jump on the gold and silver bandwagon at an intermediate-term top!
Instead, I want you to be buyers on the next pullback, buying when everyone else is turning bearish again … buying near the next set of lows … so you can then maximize your profit potential.
Good, healthy, strong, long-lasting bull markets are made up of zigs and zags higher. Strong rallies. Followed by sharp, deep pullbacks.
And that’s exactly what’s about to happen in gold and silver. Not to mention platinum and palladium.
Here’s one way I know: My trusty cycle analysis of gold, based on my artificial intelligence and neural net models that analyze tens of thousands of trading data points on gold and silver and then crunch them billions of times over to find the most probable cycles and forward path for prices.
Take a look. What do you see? Gold topping now, and heading lower into early June.
From there, we should then see gold’s next major leg higher begin.
Ditto for all the other precious metals.
So my best advice right now, as hard as it may be to follow, is NOT to buy any gold and silver.
And instead, to wait patiently for the next opportunity.
How low can gold and silver go on this pullback?
Gold can fall all the way back to $1,180, possibly even lower. Silver can fall all the way back to the low $14 level, possibly even $13.50.
As far as I am concerned, I will be using this upcoming pullback to get bearish gold and silver, to make money on the short side. And, I will be advising my trading subscribers to do the same.
But that’s not for the faint of heart and it’s not for me to recommend in this column, as timing is everything. I could not possibly get you in and out of the market in a column that publishes once a week.
The same thing, of course, applies to virtually all markets. I can’t give you timely recommendations in a weekly column. I need to be able to communicate with you daily, sometimes more than once a day, and by hook or crook, text messaging, emails, voice broadcasts, whatever means.
I’m merely mentioning that now for only one reason: Nearly all markets are now heating up in a way where there will be more fortunes made by savvy traders than at any time since the late 1970s.
Larry Edelson runs a trading service. I can’t run ads here.If I do WordPress my shut my blog down. You can look for Larry on Google and then go read his recommendations and decide if his work is for you. I’m not a trader and I recommend against trading. But for now, you can expect if you’re planning to add gold and silver coins to your collection, wait a while and expect their prices to fall again.
Meanwhile, there’s something else Larry warns us to avoid.It’s the crooked gold and silver dealers that are now surfacing on TV and newspapers again.
They are using the political mess in our country to pitch highly overpriced gold and silver coins and commemorative pieces to the public.
They use well-known actors, who get paid a lot of money to make the pitch. The pitches look and sound great of course. And they are made by professional sounding firms that usually have the word “Mint” in them.
But they are complete, unadulterated rip-offs. One such commercial that’s airing frequently is selling a silver eagle coin, calling it a mint state strike — for $25 a coin. That a whopping 59.33 percent premium over the price of silver.
What a rip-off! There’s nothing special or mint state about the coin. It’s a con game, plain and simple.
The investment strategy and opinions expressed in this article are those of the author and do not necessarily reflect those of any other editor at Weiss Research or the company as a whole.