Gold & Silver Now Buy-and-Hold and ‘Golden Cross’ Imminent

‘Golden Cross’ May Signal Big Gold Gains Ahead

“The price charts for gold (GLD) are approaching a “golden cross” – in which the 50-day moving average surpasses its 200-day moving average – suggesting the start of a bull market, but is it a buy?

Joe Terranova of Virtus Investment Partners said yes Wednesday on CNBC’s “Fast Money.”

“I think everyone should own gold, everyone should own silver (SLV). To me, it is the true buy-and-hold asset right now,” he said.

But as far as precious metals go, Terranova didn’t stop there.

“If there is something that I would trade, it would be platinum,” he said. “Platinum is a metal that has seen significant short-selling pressure throughout the year. That has been reversed because of the fundamentals we’re seeing in South Africa.”

Terranova said the platinum ETF (PPLT) was the way to play it.” 

[ No options available on PPLT currently. For Platinum, investors & traders may utilize other ETFs such as UBS Long Platinum ETN (PTM), First Trust ISE Global Platinum Index (PLTM) — with a more liquid choice being iShares MSCI South Africa Index (EZA), which holds up to a 25% weighting in Platinum miners.

In regards to the Gold ‘Golden Cross’ discussed above, take a look at the Daily & Weekly charts of GLD seen below. 

You can see on the Daily chart that the crossover of the 50/200 day simple Moving Averages is imminent. Also note how Percent R is trending higher in a manner that it hasn’t throughout the whole time frame covered on this chart — pullbacks in Percent R should be contained around mid-levels and may be good low-risk longside entry points.

On the Weekly chart, using the 10 & 40 unit simple Moving Averages (roughly equivalent to 50 and 200 day), a bullish crossover is occurring this week. There hasn’t been a bullish crossover on this time frame since early-2009, which was followed by a 2.5 year strong rally in GLD. Also note that GLD Weekly Percent R has peeked into bullish territory for the first time this year.

GLD Daily Chart


GLD Weekly Chart

Moby Waller