The following was written earlier in the year by technical analyst Larry Edelson:
-Gold has taken out the December high, which is very positive for the longer term. It confirms that gold is still in a long-term bull market. But that’s all it says.
To truly break out to the upside, we need to see gold take out the $1,808 and $1,835 levels — preferably on a weekly or monthly closing basis. Until then, gold remains in a very broad trading range that could easily see gold plunge back down.
-Silver, as noted previously, needs to take out the $35.85 level on a monthly closing basis. If silver cannot close above that level on Tuesday, February 28, then it is still at risk of a sharp decline.
He has kept his readers on the sidelines all along and has yet to change his opinions. Meanwhile, gold is up nearly $200 from its low in May and June and silver is up nearly $7 from its June low. And still, Larry has his readers sitting restlessly on the sidelines. Most of the analysts that I follow are very optimistic that gold will easily top fairly soon $1835 gold and $35.85 silver could be passed yet this month. And still Larry’s followers sit on the sidelines. None of us are right 100% of the time and it is looking more and more like this was one of Larry’s worst calls. If you had heeded his advice and sold earlier this year and are still sitting it out, it didn’t help you one bit. Most of us who are “buy-and-hold” investors are in pretty good shape and we won’t miss the upcoming significant gains because we never sold in the first place. So what’s the big deal if we rode gold down $350 this year if by the end of the year gold is back up to or beyond its high last year at this time? Why trade the market for short-term gains when gold is going to double or triple and all you have to do is buy it and hold it? Patience, patience my friends is a virtue – especially in a bull market. Like Bill Murphy says, You Gotta Be in It to Win It. In this case, it is best not to be a day late.
The last four short articles in today’s daily present up-to-date information on the dire prospect of an Israeli attack on Iran’s nuclear production facilities. It is looking more and more like the attack will take place before the election, with or without US support. I think it best to assume it will and make sure your positions in gold, silver and oil stocks are executed.
The opening feature on Sunday’s 60 Minutes was an interesting interview with the former chief of the Israeli Mossad, Meir Dagan. Dagan was featured in the interview and he was absolutely against launching an attack on Iran at this time. Just so those of you who think all Israelis favor the war scenario, this is not true. Netanyahu may be a hawk, but there are many in the government and intelligence community who are not. I hope you had a chance to see the 60 Minutes story yesterday. It goes a long way toward disarming those who think all Israelis favor an attack on Iran. Such is absolutely not the case – whether right or wrong, it is not the case. In Israel, as in the U.S., a few people on the top make the decisions for the masses.