The chart below was first published on 8/31/2011, reflecting that Gold was up against the top of a nine year rising channel and it was making a bearish rising wedge, suggesting their was at least a two-thirds chance Gold would fall in price. (see Gold Facing key Fib resistance post)
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The chart below was published 90 days ago, reflecting that Gold and Silver remained inside of quality falling channel, creating a series of lower highs. (see are Gold and Silver safe investment post)
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How has Gold and Silver performed in the past 90 days? Gold is down another over 5% and Silver has lost another 16% of its value.
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Last summer Gold hit the top of this trading range and GLD became the largest ETF in the WORLD!!!. This represented a techincal place to harvest and one of the crowdest sector plays in investing history.
For sure Gold/Silver are safe havens in case of a currency crisis!
The Power of the Pattern though reflects that their are times safe havens aren’t so safe to own.
