Most Popular
1. Banking Crisis is Stocks Bull Market Buying Opportunity - Nadeem_Walayat
2.The Crypto Signal for the Precious Metals Market - P_Radomski_CFA
3. One Possible Outcome to a New World Order - Raymond_Matison
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
5. Apple AAPL Stock Trend and Earnings Analysis - Nadeem_Walayat
6.AI, Stocks, and Gold Stocks – Connected After All - P_Radomski_CFA
7.Stock Market CHEAT SHEET - - Nadeem_Walayat
8.US Debt Ceiling Crisis Smoke and Mirrors Circus - Nadeem_Walayat
9.Silver Price May Explode - Avi_Gilburt
10.More US Banks Could Collapse -- A Lot More- EWI
Last 7 days
Stock Market Volatility (VIX) - 25th Mar 24
Stock Market Investor Sentiment - 25th Mar 24
The Federal Reserve Didn't Do Anything But It Had Plenty to Say - 25th Mar 24
Stock Market Breadth - 24th Mar 24
Stock Market Margin Debt Indicator - 24th Mar 24
It’s Easy to Scream Stocks Bubble! - 24th Mar 24
Stocks: What to Make of All This Insider Selling- 24th Mar 24
Money Supply Continues To Fall, Economy Worsens – Investors Don’t Care - 24th Mar 24
Get an Edge in the Crypto Market with Order Flow - 24th Mar 24
US Presidential Election Cycle and Recessions - 18th Mar 24
US Recession Already Happened in 2022! - 18th Mar 24
AI can now remember everything you say - 18th Mar 24
Bitcoin Crypto Mania 2024 - MicroStrategy MSTR Blow off Top! - 14th Mar 24
Bitcoin Gravy Train Trend Forecast 2024 - 11th Mar 24
Gold and the Long-Term Inflation Cycle - 11th Mar 24
Fed’s Next Intertest Rate Move might not align with popular consensus - 11th Mar 24
Two Reasons The Fed Manipulates Interest Rates - 11th Mar 24
US Dollar Trend 2024 - 9th Mar 2024
The Bond Trade and Interest Rates - 9th Mar 2024
Investors Don’t Believe the Gold Rally, Still Prefer General Stocks - 9th Mar 2024
Paper Gold Vs. Real Gold: It's Important to Know the Difference - 9th Mar 2024
Stocks: What This "Record Extreme" Indicator May Be Signaling - 9th Mar 2024
My 3 Favorite Trade Setups - Elliott Wave Course - 9th Mar 2024
Bitcoin Crypto Bubble Mania! - 4th Mar 2024
US Interest Rates - When WIll the Fed Pivot - 1st Mar 2024
S&P Stock Market Real Earnings Yield - 29th Feb 2024
US Unemployment is a Fake Statistic - 29th Feb 2024
U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - 29th Feb 2024
What a Breakdown in Silver Mining Stocks! What an Opportunity! - 29th Feb 2024
Why AI will Soon become SA - Synthetic Intelligence - The Machine Learning Megatrend - 29th Feb 2024
Keep Calm and Carry on Buying Quantum AI Tech Stocks - 19th Feb 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

When Technicals Fail, Gold and Silver Investors are Better Served

Commodities / Gold and Silver 2010 May 26, 2010 - 05:52 PM GMT

By: Dr_Jeff_Lewis

Commodities

Perhaps more now than ever in history (save for a few depressions), technical levels on everything from stocks, bonds and even precious metals have disappeared.  No longer are support and resistance lines, moving averages, or oscillators stealing the show.  Instead, investors are buying and selling with their gut, and overall, it’s probably for the better.


Investing by the Gut

Gut feelings may be the fear of short-term traders, but for long term investors, it’s entirely positive.  The fact that the market is no longer responsive to long range trends and short term support and resistance lines indicates that investors are looking towards the future and have nearly forgotten the past.  In just the last few weeks, gold has made a new high, silver has risen through various trend lines, and the technicals have all but been thrown out the window.  Today is a great day for long term investors.

Why Technicals Matter

Whether you're a technical analyst or an investor just looking to beef up your retirement nest egg, technicals are important.  Long term investors need not pay much attention the short term tops and bottoms and ebbs and flows of the market, so it is good to see short term investors ignoring them just as well.  

When the technicals begin to fail, it shows two things. First, investors don't care about past history and certainly aren't applying it to future results.  Second, investors are more cautious and concerned about future activity. 

We first saw the technicals fail during the midst of the financial crisis when support line after support line fell to sharp selling.  Less than two years later, we're watching as gold and silver push through recent highs without pause, showing that investors are no longer making decisions on price, but on quality.  Investors want peace of mind at any cost, which is why today they're paying far more for gold and silver than they were in recent history.

The Future Outlook

Gold and silver smashing through historical highs shows us that investors are looking towards higher prices in the future and have since moved on from the “invisible wall” that all but a few stocks, equities or commodities fail to break. 

Just a few years ago, investors were considered crazy to believe gold would once again reach highs set in the 1980s, and it was only a decade ago that a dollar bought four times as much silver. 

The era of cheap prices is over.  Gold and silver investors have moved on to a new economy, a brittle economy built on cheap credit, massive debt loads and unstable currency.  The economy is fine, of course, if you're protected because it won't be the gold and silver investors who pay for the crumbling house of cards.  No, it will be those saddled with debt, those invested in weak companies, and those who have yet to prepare for an onslaught of even more of the problem of cheap credit and inflation. 

Protect yourself and protect your future from the obvious.  A solid position in gold and silver will give you the peace of mind that tomorrow can always be a better day for your financial standing.

By Dr. Jeff Lewis

Dr. Jeffrey Lewis, in addition to running a busy medical practice, is the editor of Silver-Coin-Investor.com and Hard-Money-Newsletter-Review.com

Copyright © 2010 Dr. Jeff Lewis- All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in