Gold and Silver Slump: What's a Precious Metals Investor to Do?

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...first and foremost, says Neal Ryan of Blanchard & Co, recognize that a precious metals investment isn't a day trade. We hammer on this issue to the point of exhaustion because people (present company included) get frustrated, upset, emotional and so on when the prices don't react the way we believe they should over a short time frame.

...The market has started trading on technicals rather than any fundamental news, with sell side pressure and shorts currently in control of the market.

Investors should recognize, first and foremost,that a precious metals investment isn't a day trade. We hammer on this issue to the point of exhaustion because people (present company included) get frustrated, upset, emotional and so on when the prices don't react the way we believe they should over a short time frame. Step back and look at the larger picture.

...The last five years, gold has shown an average annualized return of 19% each year, proving itself to be not only a diversification hedge, but an asset earning a return on investment at the same time. Not too shabby. Prices are up about 4% this year (or 9% if you mark the clock at Jan. 5th instead of Jan. 2nd).

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