Gold & Silver - Patience Required

I've been begging for $17 silver, as many of you know.  I've refused to buy it at retail prices of $20 - $21.  Although I never knew if it would really come back down from it's rocket shot upwards, my training told me to wait.  PATIENCE NEEDED........

(Gal 5:22 - 23 NIV) But the fruit of the Spirit is love, joy, peace, patience, kindness, goodness, faithfulness, gentleness and self-control. 

(Col 3:12 NIV) Therefore, as God's chosen people, holy and dearly loved, clothe yourselves with compassion, kindness, humility, gentleness and patience. 

lk  I reported to you on 3/21/08 newsletter that we had the dreaded "hangman" candle at the top of the silver move (See that newsletter education HERE) and then WHAM - Silver dropped past my $17 mark to $16.73 and gold dropped a whopping 10% to $905.20 .  The speed at which it dropped has led me to believe that we might get some deeper pricing out of gold and/or silver.  There were some critical support structures that were blasted through as this thing came falling down through the layers of support.

What was actually happening as this fell straight down?  I'm glad you asked.  The first move up was a GREED movement as everyone wanted to get in on the big move.  The second movement down was a FEAR movement when all the greedy guys were bailing out of the ship with few profits or maybe even a loss.  Fear and greed don't work if you want to inherit the Kingdom !

The following bible verse rings out in my heart when I see fear and greed in action like in the picture of silver above.

(Gal 5:19 - 21 NIV) The acts of the sinful nature are obvious: sexual immorality, impurity and debauchery; idolatry and witchcraft; hatred, discord, jealousy, fits of rage, selfish ambition, dissensions, factions and envy; drunkenness, orgies, and the like. I warn you, as I did before, that those who live like this will not inherit the kingdom of God.

I'm waiting patiently and hoping that the price of silver and gold doesn't turn around and run to break new all time highs.  I believe that I might see $16.35, $14.79 or even $13.22 silver prices, which are Fibonacci retracement numbers that I watch carefully.  Being a long time holder of this metal, I'll probably buy some at each level if it continues to hit lower and lower.  I'll put it away and save it for a rainy day/year sometime in the future.  I personally believe that God is giving me an opportunity to get on the elevator before it begins it's journey back upwards to break new highs.  However, I also believe that there's some potential "TIME" built into gold and silver, where price will have to find it's new level of support.

I believe patience and faith (action) will allow me to inherit the Kingdom of gold and silver - God's money.

I'm not making any recommendations to you, but telling you what I'm seeing in the gold and silver markets.  I know that many of my friends, family and market students are asking the same questions, "It hit $17, do I buy now?"  I can't tell you when to buy or sell, but I personally believe that this sharp  movement downward has indicated that we might see some lower prices before we go up and break new highs.  I'm locked and loaded and prepared at the Fibonacci lines.

 

- Dr. Daniel Daves

 

 

RISK DISCLOSURE & DISCLAIMER: “Past performance is not indicative of future results”  Due to the volatility of the markets, all trade suggestions are subject to change at any time without further notice.  All comments are made for educational purposes only.  The risk of loss in trading can be substantial.  You should, therefore, carefully consider whether such trading is suitable for you in light of your financial condition, and you should never trade money that you cannot afford to lose.  Hypothetical or simulated performance results have certain inherent limitations.  Unlike an actual performance record, simulated results do not represent actual trading.  Also, since the trades may or may not have actually been executed by our staff, the results may have under or over-compensated for the impact if any, of certain market factors, such as lack of liquidity.  Simulated trading programs in general are also subject to the fact that they are designated with the benefit of hindsight.  No representation is being made that any account will or is likely to achieve profits or losses.  Dr. Daniel Daves or Basics For Success are not licensed financial brokers or advisors.