Anticyclical trading – gold and silver

In countercyclical trading, the investor tries to invest against the broad mass.

A well-known proponent of this method was the stock market guru Andre Kostolany. Buy when prices are low, preferably before a price rise, and sell when prices are high – that was Kostolany’s advice in a nutshell. Every trend goes through three phases, the correction, the trend reversal (change in sentiment) and the exaggeration. This is followed by a correction in the opposite direction. Kostolany’s method still applies today, although the difficulty lies in correctly identifying the phases.

Gold and silver are currently in a phase of weakness. The precious metals are currently burdened by, among other things, weakened crude oil prices from their high, and there are also still lockdowns in China. Thus, the gold futures for October and the Comex silver futures for September have also fallen recently. Since the market sentiment is not so good right now, investors who rely on countercyclical trading should be attentive now. Because it is recommended to buy when market sentiment is bad and to sell when the economy or sentiment is good. Behind this is also the basic idea that the opinion of the majority leads to an exaggeration of the prices, this both downward and upward. Out of fear or panic papers are sold and this always further, so that prices develop, which fall further and further. If, on the other hand, investors are positive about the market and expect prices to continue to rise, then shares are bought, even at prices that are not fundamentally justified.

Well-positioned companies include Tier One Silver – https://www.youtube.com/watch?v=9xL1ovr2544 – with silver, gold and base metal properties in Peru.

At Denarius Metals – https://www.youtube.com/watch?v=0vavK-uZyxQ -, the focus is on the Lomero project in Spain, with drilling underway. In addition, the company owns the Zancudo and Guia Antigua projects in Colombia.

Current corporate information and press releases from Denarius Metals (- https://www.resource-capital.ch/en/companies/denarius-metals-corp/ -) and Tier One Silver (- https://www.resource-capital.ch/en/companies/tier-one-silver-inc/ -).

In accordance with §34 WpHG I would like to point out that partners, authors and employees may hold shares in the respective companies addressed and thus a possible conflict of interest exists. No guarantee for the translation into English. Only the German version of this news is valid.

Disclaimer: The information provided does not represent any form of recommendation or advice. Express reference is made to the risks in securities trading. No liability can be accepted for any damage arising from the use of this blog. I would like to point out that shares and especially warrant investments are always associated with risk. The total loss of the invested capital cannot be excluded. All information and sources are carefully researched. However, no guarantee is given for the correctness of all contents. Despite the greatest care, I expressly reserve the right to make errors, especially with regard to figures and prices. The information contained herein is taken from sources believed to be reliable, but in no way claims to be accurate or complete. Due to court decisions, the contents of linked external sites are also co-responsible (e.g. Landgericht Hamburg, in the decision of 12.05.1998 – 312 O 85/98), as long as there is no explicit dissociation from them. Despite careful control of the content, I do not assume liability for the content of linked external pages. The respective operators are exclusively responsible for their content. The disclaimer of Swiss Resource Capital AG also applies: https://www.resource-capital.ch/en/disclaimer/