Gold & Silver Trading Thoughts
Ned W. Schmidt,CFA,CEBS
THE VALUE VIEW GOLD REPORT
TRADING THOUGHTS is about what the name in implies. The purpose of this publication is to promote timely and profitable trading of precious metals. We do not believe every turn in the market can b e called. Our goal is that our recommendations should be profitable. These goals are not the same. Profits are the goal. Trades are not the goal. DO NOT EXPECT ALL RECOMMENDATIONS TO BE PROFITABLE. No system can achieve that lofty goal. TRADING THOUGHTS is not intended to be a lengthy news letter filled with witty comments. The goal is simply to state whether conditions in the precious metal's market are favorable or not. Traders are advised that unless they have exceptional experience not to trade against the basic trend. Trades against market trend not expected to be as productive as those with trend.
Basic Trend: Gold: Up Investors should focus on Buy signals. Strategy: Positive, per Investment Policy of Oct 2004. Investment Policy: Looking for buy signals, and holding long-term core position.
While out and about this weekend, thank
any SUV drivers one meets. Any cars with
" save the planet" stickers should be
greeted with a wave. Thanks to all of
those " energy ostriches," price of oil
slowly workings its way toward $70. Delta
Airlines will apparently be first casualty.
Impact on rosy, phony employment
numbers? Who next?
The glorious picture in the first chart to
the right is certainly one that should make
the heart of any Gold investor flutter.
Friday's action pushed the price of Gold
up, out of the lateral pattern in which it
had been t rapped. Yeah! Hurrah! Wow!
Go for it!
That movement out of the lateral pattern
confirms that trend has returned to the
positive mode. While ending the week
overbought as the short s had their
" shorts" squeezed, some retracement is
likely in the coming week. Let Gold price
settle before buying due to over bought
condition. A little consolidation is likely,
and then on to new highs.
That smell in the background is that of a
Gold bull market. While the stock groupies
fret over their Dell delusion this weekend,
the Gold bugs can relax and reflect on
coming profits.
Basic Trend: Silver: Up Investors
should focus on Buy signals. Strategy:
Positive, Per Investment P ol i cy of
October 2004 Investment Policy:
Emphasize Buys
Silver is a little behind Gold at this
moment. Note same lateral pattern exists
in Silver. A short-term buy lat e this past
week suggests that Silver is preparing to
also move out of the lateral pattern.
Given that Silver is over sold, a move
upward is possible to catch up with Gold.
The next rally should take out $7.50, and
the top of the lateral pattern. T raders will
be drawn to Silver. That will set the stage
for taking out last year' s high before
Labor Day. $9 Silver is still expected
before a year end.
Recommendation: Sell Dell stock, and buy
Silver this week. Gold buyers should wait
for consolidation. Hold Gold and Silver for
higher prices, and profits!
Ned W. Schmidt, CFA,CEBS
Click to email me: nwschmidt@earthlink.net
August 15, 2005
Ned W. Schmidt,CFA,CEBS is publisher of THE VALUE VIEW GOLD REPORT. That report now
includes a weekly message, TRADING THOUGHTS, to help investors identify timely points for buying
Gold and Silver. You can join him for the Gold Super Cycle at
http://home.att.net/~nwschmidt/Order_Gold_EMonthlyTT.html His monumental report, "$1,265
GOLD", which has now been read in 12 countries, has 255 pages and 98 graphs, is available at
www.amazon.com or from the author. Ned welcomes your comments and questions. His mission in life is
to rescue investors from the abyss of financial assets and the coming collapse of the U.S. dollar. He can
be contacted at nwschmidt@earthlink.net.
Email this Article to a Friend 
Printer Friendly Version
