Upward Trajectory in Gold and Silver
Source: GATA, Peter Grandich (10/6/10)
"Like gold, silver could see more of a parabolic rise if USD melts away."
I use both technical and fundamental analysis to derive my opinions. While the fundamentals remain strong long term, I'm starting to get early warning technical signals. Many months ago, I left the door open for a run to $1,500 this year if certain events unfolded. One of them was a USD meltdown. We're not there yet; but, with about nine weeks left of 2010, it's still possible. The difficulty for me currently is the technical picture. I'm seeing grade-school technicians now broadcasting all sorts of projections for gold and silver.
Given all the unprecedented bearish fundamental factors in the world today, it's easy to accept that this time it's different. But I would sooner go with "it's never different." Take some profits here and begin a scale-up selling process if we continue to go straight up in a parabolic style. We're not there yet, but it's good to start preparing for if and when it comes.
Like gold, silver could see more of a parabolic rise in if the USD melts away, but it, too, is giving off some overbought readings that suggest some profit taking is warranted as the overbought condition increases. Again, neither gold nor silver warrant any mass selling. It's just prudent to book some profits as we go higher.
I know the question now is: "Can one still buy gold and silver?" If one has at least 6–12 months time horizon, yes.