Although marginally higher this morning, gold, silver, and platinum are ugly. The big question: how low can they go? No one knows when the selling will stop however the price action is as bad as it gets. Every rally has been met with selling; there has not been a sustainable rally since early August.
Since August 12th gold, silver, and platinum have gone straight down with a few rally attempts. For every reason you believe the metals should be higher, the price action says you are wrong. One thing we know for sure: the market is always right.
However, with all the negativity surrounding markets, commodities, and metals this may be a great time to buy physical metals with monies you will not need tomorrow. Paper metals are worthless as an investment, especially because we do not believe there is enough for the paper sold.
Precious metals should be owned on a physical basis with capital that is not needed tomorrow or anytime soon. Trading should be done with paper knowing that we can trade either side without emotions.
In all markets price action determines what will happen in the next day, week, or months. Keep the two strategies separate, the worst trade anyone can make is turning a trade into an investment hoping for a way out. Traders must learn to take their losses and move on to the next trade.
Patience, discipline, and money management always win the day. Let the map of the markets show you the way.