We now find ourselves in the summer doldrums, a time which typically, with a few exceptions, is lackluster for markets. One has to accept that the naysayers and short sellers have succeeded in suppressing the metals markets, for now. Investor sentiment continues to be negative. Unless some financial calamity occurs, we may see a test or even a penetration of the 2 year lows of $1,180 gold and $18 silver.
Do we throw in the towel? Some already have and gone back to the “safety” of cash or bought rental property or followed the crowd into the stock market. To us, that is like cancelling your life insurance policy because you didn’t die last year.
Watching your net worth decline isn’t pleasant, admittedly, particularly if you took position in metals in the last 2 years. That is just short term bad timing in our opinion. The markets have been, and are now, dominated by large, powerful interests with an agenda. Financial markets are no longer free and, in fact, as evidenced by all the investigations and indictments, have been totally corrupted. All the more reason to seek security in some percentage of precious metals held PHYSICALLY off the grid as the insurance against the unthinkable (ex. Cyprus, Greece, Argentina)
For us it may get worse before it gets better. Don’t panic, it’s a long term race. Our advice is consistent: never sell unless you have to.