I was going to post this yesterday but I doubted this buy signal could keep spinning and landing on black time after time. Although after a day's reflection it seems it can. What I am talking about is my personal buy signal for gold, and now seemingly for silver.Michael Pascoe is a well respected Australian financial journalist who has on occasions written about gold over the last 10 years, but each time, as far as I am aware, he has written a gold story with a negative price outlook gold has rallied shortly there after. Yesterday he wrote an article published in the Sydney Morning Herald about silver with a negative price outlook. I thought to myself, "I wonder if the Pascoe Buy Signal works for silver as well as it does for gold" - I shared my thoughts with the ABC Bullion executive and Max Keiser yesterday, and seeing that the price of silver has rallied over $1/oz since Michael's story was published I thought I better share it with all of you.
Actually the Pascoe Buy Signal mirrors what a close friend in the UK has been using for the last 10 years, whenever The Economist magazine writes a story bashing gold he gathers up all his fiat savings and drops the lot on physical gold, the signal has yet to let him down. As a result the % gain he is sitting on with his gold is significantly higher than than if he had bought regularly and pound cost averaged.
Obviously both "The Economist" and "Pascoe" buy signals are based on a very small sample of data and are not fool proof, but they do provide an indicator for those who invest based on contrarian data.
By Michael Pacsoe: No silver lining in this cloud
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