All That Glitters is Gold

• Posted by Robert Sinn
• on August 26th, 2011

Gold is not silver – the “gold crash” that was widely touted throughout the financial media on Wednesday by the likes of Dennis Gartman looks nothing like the real crash which silver suffered in late April- early May. Check it out (Gartman segment starts at the 6:30 mark, “one of the great bubbles of our time” Gartman):

 
Dennis may still be proven to be correct in his 1650 forecast over the next 1.5 months, although it has been quite difficult to keep track of when and at which price he has been long gold or out of gold recently. Anyway, here is the 2011 silver crash:

 

Silver was highly overheated in late-April at nearly $50/ounce, five margin hikes and a lot of spoiled euphoria led to a 35% crash within just two weeks. Now let’s take a look at gold:

 

$GC_F closes right up against the 61.8% Fibonacci retracement of its recent $210/ounce sell-off. I expect the volatility to continue and perhaps another margin hike might even be in the cards for next week.

Xiphos_Trading has been all over the bull market in metals over the past several years. His chart work must be followed by any serious gold or silver trader/investor:

 

 

 

 

My latest follow, FractalTrades has been posting some very interesting charts all day – particularly on gold:

Here is a quote from FractalTrades: “Harmonic Gartleys Patterns exist at all chart levels from 1 min1 to monthly (fractal). There are several different patterns. This one is a ‘bearish butterfly’ meaning after hitting the top right target, it will correct back to current levels. These patterns are comprised of EW ABCD completion where AB leg must be parallel to CD leg. The kicker is that they also accurately respect fib levels at all fractal scales. These patterns are continuous at all chart levels.”

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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