Thursday, December 9, 2010

Look at the precious metals go!

Here they come, right around the bend!  Tonight is, 'Consolidation in Asia' night.  See how the Trinity comes right into the middle of the three day average?  This is common, especially after days following a wide move down, after a big move up.  Yesterdays consolidation left little room for downside today, as support had mostly been taken out on Wednesday.  PMs always consolidate.  Always.  And when the trading band gets wide the next thing for it to do is average out.  Up...down....consolidate.  It is usually as simple as that, as there are a few other variations of PM price patterns.  Sometimes the PMs consolidate for two days before swinging up or down.  Sometimes there are back to back up days or back to back down days before a consolidation.

The consolidation is a welcomed brake in the process of the always moving metal.  The sun never sets on the gold market, and its volatility can be mind numbing-especially when considering the manipulation!  After drops like earlier this weak, one can consider buying more, as the price drop has nothing to do with long term behavior.  Environment dictates a roof, and standard of living decrease investment.  Whether it is gold or water, food or comic books, everyone saves.  Paper savers have lost their tickets, fundamentally for some mortgage payers.  The US government has also lost deeds, and the IOU dollars will serve as payment.  Who wants the dollar?


  1. Mr LH - it is great to see you started a blog - you are one of my favorite ZH commenters. I hope you get into non-PM topics, too, as you have a lot of good insights (although the PM talk is great so far). Keep it up!

  2. Thanks Scooter! This will be where I streamline my thoughts, so we are bound to run into many subjects far and wide. In all things must pass.