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Gold and silver have been exceptionally weak this year. Is it finally time to buy gold & silver?
The original article has been edited here by munKNEE.com for length (…) and clarity ([ ])
From a short term perspective, this is about as bad as it gets for gold (historically).
Here’s a very important point that I want to illustrate. Commercial hedgers are now long gold for the first time since 2000. (Gold began a massive bull market after 2000).
Some people see this as a long term bullish sign for gold. I don’t. Commercial hedgers were consistently long gold during the 1990’s while gold swung sideways in a big range. Gold and silver are increasingly showing signs that are characteristic of these long sideways consolidation patterns.
Conclusion
- Gold’s short term outlook is bullish.
- Gold’s long term outlook is a 50-50 bet.
Here’s another interesting point. Look at the dates from this study. While the U.S. economy was typically in the late-stages of its economic expansion cycle, inflation didn’t go up significantly over the next year.
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