Buying the Long-Term Trend

15 May

The best way to figure out when to purchase gold or silver is by following long (at least 10 year) trends. In my opinion, short term analysis gives you short sighted impulses. Long term trends give you sustainable expectations.

With that said, look at this chart and note the similarity between now and the 2008

10 year gold price per ounce

And for silver, note the return to the 2008 trend:

10 Year Silver Price

With both of these charts, you see the one crucial thing: silver and gold are placing themselves in an area that is highly synchronous with a long-term, multi-year, trend.

It seems like silver may come close to its low of 26, but I can’t imagine that you could buy it any more than you could 5 months ago, when it was last there. And gold may go a bit lower, but based on this chart, I have a hard time imagining it will break lower than 1500.

I’m curious for anyone else to give his/her input, but to me, it seems like a good time to buy. What do you think?

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