Good for him! What about you? Are you looking for the next big thing? I do hope you are. Just remember, that the next big shouldn't come at a price that you are not prepared to pay. Also don't forget, the economy is not what it used to be. So don't let the next big thing put you in a financial bind. As I am not telling you anything new, it does not hurt to say it again.
While I do not profess to know what the next big thing is, I do know that the only way to determine what the next big thing is is to do your homework. It is no secret that I am a big proponent of doing your homework, getting yourself informed, and taking responsibility for your actions. Take a little time and study the markets, they are not that difficult to understand once you get a few concepts under control.
Back to our topic. So Gold is down and has been going down since hitting it's high earlier this year. On the 1st of May, Gold closed up from what was a 30 day low. So where is the price of Gold going? Up or Down???? The popular theory has Gold going down to the $800 mark before any kind of notable up swing. Of course there are analysts that agree that the price of Gold will continue drop, however, not as far. They are favoring a $850 leveling off point (which we are close to now). I can pretty much believe this to be true. As I have written, it might be time to pull the trigger and get in on commodities trading (I mean if you ever were interested in doing so). However, there might be something to consider. Please read on.
Whether it's next week or next month, if you are planning to pull the trigger on a Gold buy, then you best be ready and the same thing can be said for Silver. Silver closed at $16.36/oz. which puts it up after closing April at the 30 day low of $16.15/oz. Does this signify a time to buy? Probably not. Historically, since the summer of 2002 and every summer since then Silver remains within the same price range at the end of August that it started off the beginning of May at. Check out this cool chart I made just for you.
Will Summer 2008 be any different?
I really don't think so. Then again, we did start May '08 on the upswing, so if anything we might just be able to make a couple of dollars. As for making the big bucks, if the lack of any real activity in the summer is any indicator, this may be the time begin creating a position in any commodity. By the way, here is the chart for gold.
Very Interesting, as Gold and Silver prices appear to be taking the summers off. They both start strong but lag throughout the summer months. I'll say it again this is a perfect opportunity to accumulate positions in securities thus building a strong portfolio exists and that is a good thing to do during the summer months?
Still not convinced?
Check out this chart which depicts the Dow Jones Industrial Average closing figures for the first and last days of May, June, July, and August of 2002 through 2007. By the way, these were the same dates used to create the Gold and Silver charts above.
I do hope you are bit more informed as to what might or might not be happening in the markets. Still, don't let this stop you from doing your home work. I know I will use these next four months to create a stronger portfolio.
As always, please know and understand: Past performance is NOT an indicator of future performance.
Let's Tag This With:
Dave Guerra, Gold, Silver, DJIA, Commodities, Stocks, Bonds, Economy, Portfolio, Money
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