Anything But Precious

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Three words spring to mind. Just three words: Precious. Metals. Suck.

The most damning evidence recently is that during the market chaos on Monday, precious metals were weak. And during the market strength/relief rally recently, precious metals have been even weaker. So: damned if you do, damned if you don’t.

I was cheerfully short gold yesterday. I covered at a good profit. I stated on my Tastytrade show that I was “no longer bearish” on gold.

But the Dennis Gartman curse is still in place. Gartman was, and I believe remains, publicly bullish on gold. Until that changes, I think these shiny metals are going to simply remain door stops.

Here’s another heart-breaking anecdote for you: I own a cache of gold and silver bullion. I decided that, sure, having some gold as an insurance policy is OK, but precious metals have been garbage for years, so maybe I’d clear out all my silver. Looking at the chart below, I decided on the day of that arrow to amble down to my local bullion dealer and sell every ounce of silver I had. They were, regrettably, at some kind of trade show or something, and the other dealer in town pays horrible prices, so I just decided I was stuck. My chart, sadly, was spot-on.