Tuesday, October 23, 2007
Can the precious metals runaway?
I pointed out the runaway move in the S&P last year. These kind of moves are characterized by very uniform and minor corrections. It's beginning to look like the PM could be entering into a runaway type move. So far the corrections in gold have held at roughly $25 and in Platinum at $35-$40. If this trend continues then we should look for a correction that exceeds these parameters as a hint that the run is over. The two strong metals will most likely pull the weaker two (Silver & Palladium) higher with them. Both are too cheap and I expect liquidity to begin flowing into both.