Time for Gold Bulls to Abandon Hope: Yamada
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Gold and silver prices are down big, hitting new multi-year lows to start off the week. Retail investors still clinging to the idea that the decline in precious metals was transitory have been getting battered in 2013 with the SPDR Gold Trust (GLD) and iShares Silver Trust (SLV) ETFs falling 19% and 27% respectively.
Louise Yamada, head of LY Technical Research Advisors, says the glitter twins of trading need to rebuild from the ground up, a process that will take years. "It's like a steel ball wrecking crane coming through your house; it's going to take time for the mason, the carpenter and electrician to put it all back together."
Yamada gently suggests it might be time to consider the possibility that the enormous bull run might not be resting. It could be dead. "The chart is still broken," Yamada insists. Whether you're a chartist or think of technical analysis to be voodoo, breakdowns are easy to understand in human terms. As an asset recovers disappointed buyers come in and sell every move higher, thankful just to get out alive.
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