It’s no secret that I love precious metals. They are perhaps some of the most fun investments I have. Not just the physical metals that are enjoyable to play with, but also the markets. I get almost as much joy from analyzing the futures markets for metals as I do holding a new Morgan dollar or Silver Eagle.
The one glaring issue I’ve seen is that there are many out there who share my passion, but don’t quite know how to do the analysis. I figured I would break it down.
Price Action
The exercise of analysis often begins and ends at price action for so many people. By this, I mean they pull up the current spot price or maybe look at a daily candlestick chart. And that’s that.
The chart above is a price chart for Silver futures over a 7-day period. The big triangle in the middle of the chart represents the gap between 5pm Friday night and 6pm Sunday where the price adjusted.
While I enjoy pulling up the Kitco chart or even pulling up my ThinkorSwim charts, I find that to dig in, I have to build my own. It’s the data analyst in me coming out. There are certain things I want to see in certain ways and normal charts out of the…
