Gold Price Forecast – Picking the Bottom
I’ve been doing this for a while, and I’ve seen massive swings in precious metals. Through experience, I learned to be patient and to wait for an entry with defined risk. What do I mean by defined risk? I’m referring to a set entry and exit strategy with a calculated stop…not “well, let’s see what happens.”
Bottom Pickers Beware
When prices crash, as they have, there will always be those first brave souls ready to jump in headfirst. They are afraid of missing the bottom, so they go all-in. Nine times out of ten, that’s a poor decision.
Your capital is at risk
This type of economic meltdown doesn’t end overnight. It will take several weeks to perhaps months for prices to stabilize. The first few rounds of bottom pickers will be chewed up and spit out. Once they are out of physical and mental capital – then the market will bottom.
Make A List
In the meantime, make a list of your favorite stocks. Remember, everything is on sale – not just precious metals. There are several quality stocks now paying dividends between 7% – 10%.
Our gold cycle indicator finished at 58 yesterday and in minimum bottoming territory. It could reach a perfect score of zero before gold puts in its final low.
In summary, be patient. If you do buy now, consider a dollar-cost-average strategy. Keep some ammo in reserves – prices may drop further than you ever expected.
AG Thorson is a registered CMT and expert in technical analysis. He believes we are in the final stages of a global debt super-cycle. For more information, please visit https://goldpredict.com/