HELPING PHYSICIANS ATTAIN FINANCIAL SECURITY
By Robert M. Doroghazi, M.D., F.A.C.C.
The precious metals had a great year in 2010, and went almost straight up from August through the end of the year.
In a bull market, silver leads gold and the miners lead bullion. The inverse occurs on the way down; the more speculative issues, such as the miners, are the first to show weakness and suffer the greatest losses, and silver under-performs gold.
That’s exactly what has happened this last week. Today was especially brutal. Look at the chart of GDX (Market Vectors Gold Miners ETF) on the next page. It’s tough for a chart to look uglier than that.
The chart of GLD is on page 3. GLD could easily go to 130.
But here is the point of this note. If GDX closes below 54 (the low of mid-October), and GLD closes below 130, it would mean that the precious metals could correct further. Both charts look like a head and shoulders, triple top.
No matter what the magnitude and duration of this correction, I still believe we are in a long-term bull market in the precious metals that has a long way to go and could reap you very significant profits. All bull markets will from time to time test your resolve.
RMD
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