Buy gold and silver or sell gold and silver. The price of gold and silver move up and down all day long. The pricing is the most difficult to call. Below, I listed the major factors that drive gold and silver up and down. I took this off the internet as there are many other factors, but to me these were the best. Just leave it up to chance whether to buy or sell gold and silver.
- Price movements of other commodities in combination with global demand for these commodities, an “indirect pricing” of production costs.
- Global and in particular U.S. inflation, often driven by rising money supply.
- Trade and growth imbalances against the U.S. and the resulting twin deficits, that might culminate in a “fear factor”.
- Central banks’ activities like money printing or gold purchases and sales.
- Real interest rates and in particular the ones in the U.S.: interest rates compared to inflation and wages, that might culminate in “financial repression”.
- The production/demand/inventory formula in the form of physical demand and supply.
- In the short-term, technical support and resistance levels might be more important for gold and silver than for other assets. The reason is the point mentioned above: the whole spectrum of gold fundamentals are so difficult to understand