Gold and silver continue their quiet trade as if they were wandering in the wilderness. If you gave them an EKG, both would be pronounced dead. Between the cries of manipulation and the faltering world economy nothing seems to be able to kickstart the metals.

How long can this action continue? There is no answer and no time frame. Eventually they will move in one direction or the other, which way nobody knows. Certainly, there is more room to go higher however the next big move could be lower.

Positioning should be based on your timeframe and objectives for owning or trading gold and silver. In the next month there is no direction, in the next 10 years gold and silver should be much higher than today. If you are trading in the short term, it’s all about the price action. If you are investing in the long-term, history tells us metals will be higher.

Don’t be fooled by the news and the way the media reports it. As of today, there is nothing to do. Gold and silver stand silent and show no signs of breaking out of the current range anytime soon.

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.

Todd Horwitz Chief Strategist
Stop being a prophet and make profits

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