Caution: Gold, Silver and Miners … Larry Edelson | Wednesday, July 13, 2016 at 7:30 am
Everyone seems to think that gold, silver, platinum, palladium and related miners are all on a moonshot now and will triple, quadruple and more — all without ever looking back.
The hate mail I’m receiving for not telling my subscribers to jump on board and chase them all to the moon is beyond belief.
But all that does is convince me why 90% of investors almost always lose money in the markets. They act like herds, chasing the latest trend. They buy the highs and bail out at the lows, in herds. Even my own subscribers show that tendency, as I can tell from their incoming emails.
Fact: No bull market goes straight up, and no bear market goes straight down.
Fact: The majority of investors act out of some kind of peer pressure, chasing highs, selling lows, always getting trapped and spilling blood.
Fact: Bull markets always retrace at least 50% to 70% of their prior rally. In the case of the first leg up, the retracement can be as much as 80% or more. Ditto, inversely, for bear markets.
Fact: Investors who chase markets almost always lose money.
I know a lot of my followers are chasing gold and silver and mining shares now. And I can tell you with near certainty, that if you are, you’re going to end up losing a lot of money.
Simply look at my latest Artificial-Intelligence Neural Net (AI) forecast of the gold data and cycles, based on thousands of data points and combined in billions of ways to come up with the most accurate forecast.
Click for larger version
Yes, it was wrong on Brexit and the target date of June 27 turned out to be a high instead of a low. But cycle inversions are rare, and the market almost always gets back on track, so to speak, with the AI model.
I would not want to be heavily long precious metals or miners looking at this chart. It’s showing the potential for a steep slide into October.
The only way that might change is if gold were to close above $1,404.50 at the end of the month. And so far, gold can’t even get through the first major level of resistance at $1,368.
What to do if you’re heavily long gold, silver or miners? If it were me, I’d take my profits. If you’re reluctant to do so, for whatever reason, at least hedge your holdings with inverse ETFs such as DUST for mining shares … GLL for gold and ZSL for silver.
By the way, the dollar is about to explode to the upside, which will put further downside on the precious metals.
Stay safe and best wishes,
Larry
P.S. I want to send you a complimentary issue of my flagship newsletter Real Wealth Report … just click here to download now!
www.moneyandmarkets.com/media/wri/PDF/RWR/ISSUES/RWRE14601MAM.pdf
