Gold, Cryptos and the Fear of Missing Out
With gold closing solidly above $1,375/oz last Friday - the weekly close, the technical picture cleared up towards the bullish side. But gold will not go up in "one move" towards $1,500/oz. Keeping this in mind, we might see pull backs below $1,400 and then test the old resistance at $1,350 to $1,375 area.
What also comes into play for us Euro Investors is the USD/EUR exchange rate. Depending on Brexit, China and Central Banks, we might see Gold in Euros dropping towards 1,170 Euro per Ounce. Which would be strong buy levels.
So if you missed the recent move-up, invest in silver as it's compared to Crypto and Gold the cheapest available investment. And be back into gold when gold retreats back into the 1,170 Euro/oz level. There's no rush with this.
Over the past 24 hours there's a lot of talk in the scene about the "Fear of missing Out". It's that chill that runs down your shoulders sometimes making you shake a little. This "fear" causes investors to chase a trade because they missed an entry. In this case the best way of action is to keep calm and wait for the next entry level - outside the fear and emotion of having missed the train.
The Bitcoin/Gold ratio is the highest with 9oz of Gold for 1 Bitcoin. It is also close to the all-time high a few years back. For all Bitcoin holders: Gold is the second cheapest buy at this present time during the history of Bitcoin.
The gold/silver ratio seems to have started to move down now, as the 1 week chart above shows. The main idea is to prefer silver over gold for now, and then change it to gold along the ride towards ratios of 55:1. In general we are waiting for this to happen for quite some time. The investing rule still valid: Buy the dip and keep buying silver above the ratio 90:1.
The 1 month chart below supports the same picture:
If you think about investing, here's what we recommend:
Gold: Wait for the next entry level of 1,170-ish Euro/oz
Silver: Buy now
Crypto: Take partial-profits from Bitcoins.
As usual this is no advice, it is our view on markets.
|Older Gold and Silver Market Update May 10th 2019||Newer Bitcoin – ABC-Correction or do we see new Highs?|