Gold & Silver, Locking in Gains

The caption on this post could just as appropriately be called Watching Gains Slip Away or Rolling Over? Doesn’t matter, as I like to say, “It is, what it is.” Is it okay to quote yourself? On Friday (7/21/2006), I unloaded most of my precious metal holdings. While it’s true that I nailed the precious metal pullback that bottomed on June 13th, subsequent positions were in the red and offsetting earlier gains. Both Gold and Silver charts are showing signs of rolling over and the last few days have been weak. The weaker of the two metals is Silver, which has turned down on four of four indicators I use on my main ESignal layout screen. As is often the case, these charts could go either way, but, you don’t get to make that judgment call after the fact. I chose to take some gains while I still had them. While I was at it, I closed out most positions relating to precious metals, including ones I recently opened in the Central Fund of Canada Ltd. (CEF) and the Market Vectors Gold Miners ETF (GDX). Now I get to watch from the sidelines to see if I made the correct decision.