Precious Metals: Time To Move On

The final, six-month performance of our top ten names from August 6th, with three precious metals ETFs circled (Screen capture via Portfolio Armor). 

Moving On From Precious Metals

In a post last week (Silver Isn't The Next GameStop), we wrote that we were still bullish on the silver ETF SLV. We're not bullish on it anymore. We're no longer bullish on precious metals in general. Maybe you shouldn't be either. Here we explain why. First, let's consider why you might be bullish on them in the first place. 

Do You Want To Make Money Or Be Right? 

Bloomberg's Joe Wiesenthal touched a nerve with this tweet last week, showing that gold prices had dropped since the Georgia Senate runoffs. 

The reason that tweet touched a nerve is because many investors own precious metals for ideological reasons. They're into Austrian economics, they believe profligate government spending will lead to hyperinflation, etc. Maybe they'll even be right someday. But why not make some money in the meantime? 

What Makes A Good Forecaster 

Several years ago, we interviewed a leading Super Forecaster from Phil Tetlock's Good Judgment Project. We were reminded of that over the weekend by this tweet. 

When's the last time you updated your beliefs on precious metals?

Our system doesn't have beliefs, but it does update its analysis every trading day. 

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Duke Peters 3 weeks ago Member's comment

To what? Overvalued companies? I like how they say metals are tanking and they show a nice super short term chart. Pure propaganda, metals are in a pullback. Silver is banging off an eight year old weekly gap. The media will use every trick in the book to keep metals from taking off. Remember...The media is owned by the corporations that are in bed with the manufacturing corporations and they don't want a run on metals.

David Pinsen 3 weeks ago Author's comment

Take a look at how MSTR did yesterday - and how it's doing in the pre-market Tuesday.