Bob Moriarty of 321 Gold discusses how best to play the correction currently underway in the precious metals markets.
You would think that the flock of sheep listening to the wolves would eventually wake up and realize that they are going to get shorn again and then eaten. It happens the same way every time and the sheep fall for it once more.
Gold and silver topped in early July after a six-month rally. The XAU and HUI topped in mid-August after a 198% and 186% climb respectively since January. You would think that the sheep would wake up and smell the roses. It was a wonderful opportunity to take some money off the table.
I wrote a long piece in early August, just before the shares peaked talking about how money always moves from weak hands into strong hands. I was trying to warn people. And I followed that up with another piece in early September saying the correction would last a little longer and we would have a monumental buying opportunity.
I was not alone. Bob Hoye of Institutional Investors was warning readers that a correction was underway in August. Tom McClellan of The McClellan Market Report was saying for months that we had a low for gold and silver coming up in October. Both Bob Hoye and Tom McClellan was saying last December that the low was in for gold and silver. They nailed both the bottom and a perfectly normal correction as I did.
But the gold and silver markets are filled with wolves that want nothing more than to get your money in exchange for feeding your fantasies. At every market low they are whining about how the bullion banks are manipulating the gold price and keeping it …read more