Buying pullbacks in gold and silver
“New highs are times to take profits on a scale-up basis, and significant corrections offer the opportunity to step up to the plate and repurchase the precious metals. Unfortunately, the human emotions of fear and greed often drive traders and investors to buy when markets are peaking and sell on days like September 5 and 6. Trailing stops can be useful tools and capital savers during wild bull markets.”
USAGOLD note: For Investors in the physical metals, i.e., those who have their positions fully paid for and stored safely away, short-term price movements are not usually a matter of concern. For leveraged investors in the futures and options markets, it is a different story. The short-term is always in such cases a direct and abiding concern. If one fundamentally believes in the metal’s safe haven attributes, a drop in the price can be seen as an opportunity to acquire portfolio insurance at a more favorable price.