Customer Service 1 (888) 261-2693
Please enter Search keyword. Advanced Search
Home About Us Resources Archive Free Reports Market Window

A Massive Change in Precious Metals You Need to See

By Dr. Steve Sjuggerud
Friday, October 28, 2016

Wow. I can't believe the sea change that has happened in gold in the last two weeks...
 
Two weeks ago, my headline here in DailyWealth was "Gold Isn't a Buy Yet... But it's Close."
 
That day, I said:
 
Personally, I look forward to getting back into gold and gold stocks with my own money... They have fallen, a lot, and I believe we're at the early stages of a major long-term bull market in gold stocks.
 
But even after such a fall, and even with my long-term outlook, I personally can't get excited just yet...
 
Unfortunately, gold is still loved... And it's still in a downtrend.

My, what a difference a couple of weeks makes...
 
Today, large investors are bailing out of gold – at a frenzied pace. Take a look...
 

Meanwhile, the bleeding might have stopped in the price of gold. It's hard to call it an "uptrend" right now... But gold has moved sideways for weeks. The downtrend might be nearing its end.
 
And it's not just gold...
 
We've seen similar extreme moves by big traders in other precious metals.
 
Platinum has been the most extreme. Take a look...
 

You can see from the chart that you don't want to own platinum when investors have piled up big bets on the metal. That's where we were over the summer. But as you can see in the bottom right of the chart, big investors have bailed out of platinum today.
 
So the big question is... What do we do now?
 
Is this moment a buying opportunity for gold and precious metals?
 
Personally, I'm still not buying just yet...
 
I want to see even more large investors get out. And I want to see more of an uptrend in prices.
 
I want to be clear here: The story for gold and precious metals has improved dramatically in the last two to three weeks. The change has been more dramatic than we've seen in a long time.
 
Now is a much better time to enter gold or precious metals than it was two or three weeks ago.
 
But it's still not "optimal" – yet.
 
Based on these charts, platinum is closer to a "buy" now than gold...
 
More investors have given up on platinum. That's means platinum is closer to the bottom, in my book.
 
Summing up, investors have massively changed their opinions on gold and other precious metals in just the last couple weeks. And big investors have started to throw in the towel.
 
I didn't think it would happen this quickly, or to this degree. But it's true. Gold is quickly moving from "loved" toward "hated" again.
 
I love to see this... This makes gold and other precious metals much more attractive than they were just a couple weeks ago.
 
The "red light" in gold has changed to yellow... We're just not all the way to green, yet. I'll let you know when we get there.
 
Good investing,
 
Steve




Further Reading:

The picture in precious metals has changed drastically in the past two weeks as they move closer to being "hated"... And Steve is following this trend closely. Check out his original article investigating the moves to come in gold and silver: Gold Isn't a Buy Yet... But It's Close.
 
Steve recently outlined exactly what he looks for in a trade. If you're still waiting for the "green light" in precious metals, or in any other investment, you can read about Steve's thought process in his two-part series here and here.

Market Notes


THE LATEST 'BAD TO LESS BAD' WINNER

Today's chart highlights one of our favorite strategies at work...
 
Regular readers know that Steve coined the term "bad to less bad trading" several years ago. It involves buying assets that have gotten crushed and are making massive profits as the market starts to return to normal – or when things simply get "less bad."
 
Right now, we can see a "bad to less bad" move in shares of iron-ore giant Vale (VALE). As Steve wrote in June, the story in commodities has been bad. The sector had fallen in half from its peak in 2012 through the start of 2016.
 
Investors gave up on the biggest commodity firms. VALE shares fell from around $36 per share to around $2. But as things have gotten "less bad" in commodities, VALE has exploded higher... Shares are up more than 220% since January and hit a new 52-week high yesterday. It's a perfect example of the power of "bad to less bad" trading...
 

premium teaser

Own this gold and silver miner during the next precious metals boom...
 
"We believe we're on the cusp of a historical bull market in precious metals," Porter writes in a recent Stansberry Gold & Silver Investor report.
 

Recent Articles
Legal Notices: Stansberry Research LLC (Stansberry Research) is a publishing company and the indicators, strategies, reports, articles and all other features of our products are provided for informational and educational purposes only and should not be construed as personalized investment advice. Our recommendations and analysis are based on SEC filings, current events, interviews, corporate press releases, and what we've learned as financial journalists. It may contain errors and you shouldn't make any investment decision based solely on what you read here. It's your money and your responsibility.

 

Readers should be aware that trading stocks and all other financial instruments involves risk. Past performance is no guarantee of future results, and we make no representation that any customer will or is likely to achieve similar results.

 

Our testimonials are the words of real subscribers received in real letters, emails, and other feedback who have not been paid for their testimonials. Testimonials are printed under aliases to protect privacy, and edited for length. Their claims have not been independently verified or audited for accuracy. We do not know how much money was risked, what portion of their total portfolio was allocated, or how long they owned the security. We do not claim that the results experienced by such subscribers are typical and you will likely have different results.

 

Any performance results of our recommendations prepared by Stansberry Research are not based on actual trading of securities but are instead based on a hypothetical trading account. Hypothetical performance results have many inherent limitations. Your actual results may vary.

 

Stansberry Research expressly forbids its writers from having a financial interest in any security they recommend to our subscribers. And all Stansberry Research (and affiliated companies), employees, and agents must wait 24 hours after an initial trade recommendation is published on the Internet, or 72 hours after a direct mail publication is sent, before acting on that recommendation.

 

© 2024 Stansberry Research, LLC. | Privacy Policy| Customer Service
Stansberry Research. All Rights Reserved. Protected by copyright laws of the United States and international treaties. This website may only be used pursuant to the subscription agreement and any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), in whole or in part, is strictly prohibited without the express written permission of Stansberry Research, LLC. 1125 N Charles St. Suite 500, Baltimore MD 21202.