Precipitous Gold and Silver Price Drops
By: John Fisher As I write this, gold is down $107 and silver is down $5.48. These are precipitous gold and silver price drops!
In a move that is said to have “underwhelmed markets,” the Federal Reserve announced that it will implement what has been dubbed “Operation Twist,” using $400 billion to re-balance its bonds portfolio in favor of longer-dated debt. Both gold and silver fell in after-hours trading following the announcement, and Barron’s reports that investors in stocks and precious metals “found some common ground for concern after the Fed unexpectedly pointed to slowing economic growth.
“What does this mean for you?
1. Buy as the price drops.
2. Continue to buy as the price continues to drop.
3. Do NOT try to pick a bottom – you will be unable to do so. Remember, your sole goal is to buy as the price is trending down, not to buy at the bottom.
All Things Considered – John’s Commentary
I am asked every day “What are you doing John?” Make no mistake, we are buying right now – incrementally, as the prices trend downward. It is an approach that we have used over the years and it has never failed us.
Remember, gold and silver prices will be significantly higher than they are today in six months and a year. If you buy today and gold drops another $20 you won’t remember it in a year, nor will you care.
Quote of the day: “As fewer and fewer people have confidence in paper as a store of value, the price of gold will continue to rise.” – Jerome F. Smith
