If you’ve been following the precious metals market at all during the last 8-10 years, you’d know that gold bugs can be dogmatically bullish with their continual predictions that gold and silver will be going to the moon in short order.
While we can understand that the fundamentals – massive money printing, low interest rates, record levels of debt and government spending, global instability – point to the precious metals rising considerably, we still have to be open-minded about other factors besides the fundamentals, especially when we see the metal’s price breakdown.
Wait for the Time to Strike
It can be frustrating in the short run when things don’t turn out the way we envisioned them, but it’s important to remain calm. It’s important to remain open-minded and accepting of reality. If reality is telling us something we don’t want to hear, its best for us to simply accept the inconvenient reality, rather than to delude ourselves.
So even if you’re all in on gold, you should be open to accepting evidence that conflicts with your projections, because the goal shouldn’t be to be blindly married to gold and silver, but rather the goal should be to make money.
Recently silver was at a key junction and it failed to maintain its upward trend. Silver is looking like it could continue to break down, possibly falling below its 2015 low. The current price targets are in between $12.80 and $13.65. Probabilities say for silver to not continue falling, silver must make a decisive move higher in the next couple weeks and prove that this decrease was a false breakdown.
If this isn’t a false breakdown of the metals, then the precious metals and especially silver are not looking too bullish for about the next six months at least. This is a fantastic opportunity to patiently wait for silver to bottom out and then reinvest heavily and this is also a fantastic opportunity to continue to accumulate small amounts each month. Downtrends are when you want to be stacking and accumulating.
These periods of time when the market is not going our way are the times that one should be focusing even harder on preparing for the next move higher. Let these next few months be a time of strategy and refocus.
Gold and silver still have a ton of consolidating to do. This means you have time to prepare and plan. Just don’t let your emotions and frustrations get the best of you.
This article was originally posted on Red Tea News.
