How sensible is it to invest in gold? There is no blanket answer to this frequently asked investor question. Much more depends on what you personally expect from an investment in gold.

10 experts give their blunt opinion about investing in Gold. They talk the pros and cons of buying gold, each from their own perspective.

By Chris Vermeulen – Chris Vermeulen is the founder of Technical Traders Ltd. He is an internationally recognized technical analyst, trader, and author of the book: 7 Steps to Win With Logic.  and  his newsletter www.TheTechnicalTraders.com

There are really only a few short and simple answers to the question why you should consider buying Gold? Investing in Gold provides a hedge against risk, capital preservation and opportunity for returns.

First, Gold, historically, has been and will continue to be the basis of physical wealth for the foreseeable future. Currently, Gold and Silver are relatively low cost compared to other assets offering similar protection.  As of right now, Gold and Silver are nearing the lowest price ratio levels, historically, that have existed since 1990. This means, the relationship of the price ratio for Gold and Silver are comparatively low in relationship to how Gold and Silver are priced in peak levels. So, right now is the time to be acquiring Gold and Silver as a low price hedge against another global crisis event or market meltdown.

Second, the fact that the Gold and Silver price ratio is historically very low (meaning they provide a very good hedging opportunity at historically very low price ratio levels) also means that cash can be traded for physical gold with very limited risk and provide an excellent hedge for inflation, global market crisis events and as long term investments. Taking advantage of the current market conditions, one has to be aware that crisis events do exist and present a clear risk to future equity investments. One could decide to risk further capital hedging with options or short positions as risk becomes more evident, but these are inherently more risky than a physical Gold or Silver investment. Physical Gold or Silver, especially rare coins which include greater intrinsic value, can provide real capital, real gains, real hedging of risk and real return – whereas the short positions or options are only valuable if the trade is executed to profit.

Lastly, Gold and Silver are very limited in supply on this planet and, unless society decides that Gold or Silver is absolutely worthless as a substance, will likely continue to increase in value. News that China and Russia are acquiring hundreds of tons of gold each year in preparation for a gold based currency are another set of reasons that you should consider starting your own physical hoard of precious metals. The most important thing for you to understand about owning physical Gold and Silver is that it is a protective investment that can be liquidated or resold at almost any time in the future. It can be traded, held, secured and transported easily. You can physically take possession of your Gold and Silver and be assured that through any banking crisis, global market crisis or major global event, you have enough physical precious metal to operate in a crisis mode and likely attain great wealth/gains in the process.

Think of physical Gold and Silver like an “emergency kit”. You hope you never need it, but when you do need it, you had better be prepared and have set aside some physical holdings before the crisis event happened. Out here in California, we keep “Earthquake Kits” with emergency supplies, water, lanterns, food and other essentials. Well, guess what is included in my Earthquake Kit? Yup – Gold and Silver in proper quantities that I could barter and trade for items that are essential.

The point of my post is that I can think of no reasons why anyone would not want to attain some physical Gold and Silver at today’s prices to protect against known risks, provide a hedge against inflation and crisis events and to protect wealth from what we all know will happen in a crisis event – the banks will close or limit cash availability (think of Greece). So, it is really up to you to determine if and how you want to prepare for what could happen in the future. Will you have your “emergency kit” and be prepared or not?

You can read more expert opinions on what makes gold a sensible investment – Click Here

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Chris Vermeulen, Founder of TheTechnicalTraders.com joins met today to look at the markets that are breaking out in early 2018. The USD, oil, copper, and treasuries are all at levels not seen since 2014. Plus as Chris notes the precious metals are also very close to breaking out which could be the final push to make traders move into the commodities sector even more.

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Over the past few weeks, we have been writing about our US major price predictions for the beginning of 2018 and how they have played out.  If you have been following our analysis, you have already learned that we predicted a 3~5% price increase in early January 2018 for most of the US major equity indexes as well as a period of brief stagnation near the middle of February.  Today, we are going to revisit these predictions to attempt to provide you with our updated price expectations.

As you read this article and review our analysis, please keep in mind that we are showing you an advanced price modeling system that is capable of learning from historical price activity as well as illustrating the highest probability outcomes of price based on its analysis of key “genomic” price patters and technical patterns.  The reason this is so important to understand is that we are illustrating 2~3+ month in advance based on our modeling systems interpretation of price action.  Imagine having the ability to predict 2 to 3 months in advance with a relatively high degree of accuracy for any stock symbol you like?  This is a very powerful analytical modeling system and we are happy to be sharing this research with our readers.

First, let’s review the SPY and the possibilities our Adaptive Dynamic Learning (ADL) price modeling system is showing us as well as how accurate the first few weeks predictions have been for 2018.

As you can see from the chart, below, our analysis on December 11, 2107 presented a series of YELLOW DASH lines that represent the highest probability outcome of price going forward.  If you take a close inspection of the price levels and Yellow Dash Lines near the end of 2017, you will see that actual price levels were muted in comparison to our predicted levels.  This happens when we get a brief anomaly in price action whereas price fails to meet our expectations.  When this happens, most of the time price will recover to near our predicted levels at some future point in time which makes these “anomaly triggers” quite profitable.  Imagine knowing that price “should be” near a certain price level but is currently 2~5% lower.  Obviously, one could take a long position and wait for the equity price to simply recover to the projected price level for easy profits.

This is one reason why we believed early January 2018 would prompt a strong rally and a continued rally.  The first few weeks of January 2018 were predicted to be well above $276-278 while price was hovering near $268 at the end of this year – that’s a 4% easy move.

Currently, the predicted price levels are still moderately bullish for the next 2~3 weeks before we begin a rather sharp “washout high rotation” – peaking near $285 by March 5^th, 2018. This means, we should be expecting some more narrow price rallies to continue with somewhat diminishing volatility in the SPY before expecting a POP rally (really a “washout high candlestick pattern”) to form near February 15^th.

After this Washout High patter forms, traders should protect longs and expect a 4~6%+ price contraction that will scare the markets.  Any price contraction of more than about 5% typically frightens the markets to a degree that people start talking about “bear trend possibilities”.  From the prediction of our ADL system, this looks to be a very fast and aggressive downward price swing in the SPY – so it could be news related.

Our ADL system is predicting somewhat similar price action for the NASDAQ, yet we have a period of consolidation to get through first.  As you can see from the YELLOW DASH lines originating at the same December 11, 2017 time frame, the same type of setup happened in the NQ as with the SPY.  By the end of 2017, the NQ was dramatically lower ADL predicted price levels.  The ADL system was predicting the NQ would reach $6725 by the end of the first week in January 2018 while the actual price at the end of 2017 was $6408 – that represents a +315 pt range.  We took advantage of that “anomaly” by predicting a 3~6% rally in the QQQ ETF in the early portion of 2018 to our members.

Now that our predictions for the first part of 2018 have played out, lets focus on what is next.  The ADL system is predicting a stagnation in price action for the next 4~5 weeks with narrowed volatility and rotation.  We could still see some moderate volatility in price ranges, yet we expect the overall price advance to slow considerably over the next few weeks.

Somewhere near or after February 19^th, we expect the NQ price to break to the upside with another 3~5% rally (again, another 350+ pt swing) that should end near March 15^th and begin a dramatic downward price move.  The ending prediction of the ADL system for April 23, 2018 is $6846.25 – pretty much exactly where we are at right now.

So, knowing this information and knowing that both the SPY and NQ will likely top, or present a short-term topping formation near the middle of March 2018, what should you be doing?  How are you going to trade these opportunities?  Do you want more of our help in understanding how to profit from these moves? Also, if you own Bitcoin you should read our most recent post and see our technical analysis on what to expect next.

That is exactly what Technical Traders Ltd. offers to our members through the Wealth Building Trading Newsletter.  Each day we provide detailed video market analysis and detailed market research to our members.  We identify trends, reversals, trading setups and global market research for all our valued members.  We help them find ways to profit from these moves while keeping them aware of the markets longer term objectives.

We’ve just completed the initial move of 2018.  The rest of this year is sure to be full of interesting and exciting trading activity.  We can’t wait to show you what happens with other asset classes and with equities after the March 2018 correction.  Visit www.TheTechnicalTraders.com to see how we can assist you in profiting from these market moves.  We just laid out a price map of the markets for the next 2~3 months for you to trade with.  Maybe it is time you considered the value we can offer you in terms of advanced predictive analysis and more?

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