Its Over

Per Gary Savage:

Here is my bull market game plan.

Those that stick to it will make life changing gains over the next several years. First off we put most of our metals capital in physical. We don't trade physical. This is strictly a buy and hold long term position. The reason we choose physical is two fold. First and foremost we won't be tempted to over trade physical. It's easy to hold physical through any and all corrections big and small. You won't panic sell at bottoms,and you won't sell way too early. I didn't think twice about my physical during the crash in March of 2020. I could care less if I buy at tops or time perfect bottoms. I just accumulate, and I don't much care about my purchase price during this phase of the bull. And second we are entering a major economic crash period where government debt reaches the end game and governments will be looking everywhere for wealth to confiscate. I want a big chunk of my wealth in physical and out of the banking system during this period. I will buy some close to tops as insurance in case I'm wrong and the bubble phase begins sooner than I think, and I will buy when I think metals are at an intermediate cycle low (I plan to buy another 100 oz. in Sept.). I'm not going to sell until we get into a bubble phase and I see every Tom, Dick, and Jane buying gold and silver. I expect gold will be somewhere around $10,000 or higher by that time. So it is irrelevant to me if I bought at $1800 (most of my physical was bought at this level), $2400 or $3000. I consider anything under $3000 a steal.

On the other hand we trade miners and ETF's with a small part of our capital. Maybe we can outperform our physical, and maybe we don't, but I'm willing to give it a try with a modest amount of our capital. As we've seen metals are erratic and deceptive. It's hard to buy at bottoms, and even harder to sell at tops. But like I said, I'm willing to give it a shot with a small amount of capital.

When I make calls to buy or sell that is what I'm talking about, our small trading positions. We aren't going to get exact bottoms and we aren't going to get exact tops. We don't need to, our physical is our insurance against the erratic swings that make it hard to time metal trades. We managed to get in on March first with leverage and ride a big chunk of the move to April 12th. That trade alone has made this one of our best years ever while we wait for the next great setup in Sept. In the meantime we've mostly just let our physical positions catch the rest of the rally in metals, and yes they are going to decline during the corrective phase that is now underway, but I could care less, I'm not going to sell and pay taxes on those physical positions. I will continue to hold, and continue to accumulate for at least another year. This is an almost fool proof plan to make life changing gains during this major bull market, and if we can add a little bit by trying to trade the intermediate cycles even better, but the really big money will almost certainly come from our physical positions.