trading

trading

Thursday 4 August 2011

There has been virtually no safe harbor in today's market action.

For those of you who have been buying silver and gold over the last few weeks may consider taking some profit here. That is not to say they wont keep going higher over the longer term, but in the short term, they may continue to sell off as liquidity is raised to meet margin calls.
In late 2008 when the market had its slow motion crash from September through November, nothing was safe, with most stocks and commodities losing typically between 50-85% of their value peak-to-trough. Gold was perhaps the most robust out of all vehicles, but still sold off over 25% peak-to-trough.

The market seems particularly vulnerable here, so it may be prudent to keep your long exposure to precious metals on the lighter side until the dust settles and the general market stabilizes. You can then always buy back what you sold.

No comments:

Post a Comment