Gold, Silver And Rare Earth-The big secret behind gold’s $100 Collapse!

Gold: What comes up, must come down…The big secret behind gold’s $100 Collapse…Adam Hewison, President of INO.com, Co-founder of MarketClub: The question many investors are asking themselves today is, just what happened to the price of gold? Did the world change? Did the problems in Europe go away? Did all the states manage to find funding to cover their deficits? No, none of that happened, but gold still dropped $100. It’s all about market perception and timing, two things we’ve talked about many times before on the Trader’s Blog.

I don’t know about you, but I remember when gold was over $1,400 an ounce and all I could see on TV where ads from gold companies extolling the virtues of buying gold as it is real money. Since the fall, I expect we’ll see fewer of these advertisements on TV and in print. So what did happen to gold? Well, for starters there were some key technical levels broken. If you’re a gold trader, but not a technical trader, you really need to learn how to read charts and see what other traders are doing.

Secondly, there did not appear to be any other news to drive this market higher. When that happens, markets tend to fall under their own weight, and as many retail investors purchased gold, there was nobody on the other side of the market to support gold.

So the question is, is the move over in gold? That’s a tricky one. I want to show you in today’s video exactly how we’re looking at this very emotional market. Every time we have created a video indicating that there would be some pullback in gold, we were bombarded by the gold bugs saying that we’re crazy. When you see a market pullback as much as gold has, you have to have some respect for the market itself.

If we look at the price of gold today at approximately $1,330, it pretty much equates to what happened in the last 30 years when gold was trading at a high of $850 an ounce. If you factor in inflation over the last 30 years, gold is probably lower now than it was 30 years ago. So how good an investment is gold? I think gold is more of a barometer of fear than anything else. Clearly there are other investments in the marketplace that have better returns. Let’s get back to gold and what we think will happen. In this short gold trading video we analyze the market using our “Trade Triangles,” the Williams%R, and the MACD indicator.

Why is gold not going higher with all the turmoil in Egypt?

Despite all the turmoil in Egypt and the Arab world, gold has stubbornly refused to rally. This probably causes great concern amongst the gold bugs and the folks who are bullish on gold. As we have mentioned before many times on this blog, “perception is more powerful than fundamentals.”

While the gold bugs argue that the market is being manipulated, I am more of a realist and respect what the market is actually doing. The big question on everyone’s mind is: Why are food prices and other commodity markets soaring, while gold is dismally staying down in the $1,330 area? MarketClub’s Trade Triangles are all Red, meaning that the trend for gold is likely to remain negative or at best move in a sideways fashion.

My best estimation at this point in time is that we are going to see more sideways action and probably some recovery from current levels. However, I would like to see some concrete evidence that the market has actually put in a low and that we will see a recovery in this yellow metal in the future.

One thing I can say, historically our monthly RED Trade Triangles have not been successful in gold. You would have been more successful fading the RED monthly Trade Triangle signal and going long gold. Before getting, “gung ho” on this approach, you will be better off waiting for a green weekly trade triangle to kick in which would indicate that the market has probably made a low. Watch this Gold Trade Triangles Video! That is the main reason why, we recommend using the weekly Trade Triangles for trend, and daily Trade Triangle’s for timing. In this short video, I explained what I mean and show you concrete examples of how you can use this strategy to make money.

Precious investments you wont want to missGold, silver and rare earth; which is right for you?

Gold, silver & rare earth…Which has the strongest trend right now? In today’s video we will be looking at the gold market, analyzing the silver market, and finally, checking into the rare earth market. Before you look at the Gold Silver & Rare Earth video, you may want to consider doing this as an exercise: Write down which market has the strongest trend – up or down. Then rate the markets. Number 1 ……..Number 2 …….Number 3 ……. Once you see the video it will become clear to you how we rate these markets. It might surprise you.

If you’re using MarketClub’s “Trade Triangle” technology the answer is simple and you’ll discover it in a matter of seconds. If you haven’t used our “Trade Triangle” technology, this will be a good exercise for you to look and see just how powerful this technology is and how it can help your trading.

We all know that gold has had a big move, but so have silver and rare earth stocks. So what’s next? I hope this video helps outline some ideas that you can put to good use in the future. As always our videos are free to watch and there are no registration requirements. All we ask in return is that you Tweet about us and share this video with your friends. Also, please feel free to comment on our blog. Enjoy the video and every success in trading!