These are the gold/silver charts…the market is up huge today after bernank opened his trap again, hinting at more QE…gold is back near 1700
Below are those “wedge” patterns I’ve been following…basically the trading range narrows to a point where a breakout is then imminent…..this consolidation we’ve seen over the last few months has been actually great long-term. It has essentially flushed out all of the weak players, and has created a massive base to move up from…1700 will be the floor for gold, and 30 for silver….similar to when it was $1000 gold and $18 silver…
In my mind, it’s a perfect time to ante up again – no one is talking about the metals anymore…everyone thinks the economy is recovering, the stock market is up…it’s always a good time to buy when it’s off the masses radar screens.
You only have to remind yourself that nothing has been fixed – any recovery is smoke and mirrors ahead of the election…the one thing no one ever considers is that interest rates are essentially at zero…the second they start creeping back up again, the whole thing falls apart