Patrick Karim: Silver to Reach $70 in the Next 12 Months
Tom welcomes Patrick Karim back to the show to discuss his latest charts that focus on silver and gold. Patrick is a proprietary capital manager and chart trader.
Patrick discusses various historic technical patterns and how they may repeat in his coming bull market. He expects $2300 gold within a couple of quarters, followed by a retracement. Gold against most foreign currencies looks similar to the beginning of the move from 2001 to 2007.
Silver is going to go crazy, and he thinks it will probably drive investors crazy. Build conviction and belief, and then you will be able to hang on because you will know the ride isn’t over. Patrick discusses critical things to look for when we approach a top in the market.
Patrick uses COT data and contango in the futures market to evaluate silver. Future premiums over spot in the paper market act as a sentiment indicator. Currently, premiums have fallen, and we may be nearing another buying opportunity.
The sugar market is a confirmation for inflation, and he contrasts it with the gold chart. He feels that sugar is preparing to move higher.
Patrick contrasts the miners (SILJ) with silver futures price and the Dow and discusses how those typically perform.
He says, “If you’re always worrying about the next crash, always worrying that something crazy will happen, you probably won’t get in. Doom and gloom scenarios are horrible for trading… There is no stopping this train, and overall the trend is on your side, you should see some very good returns over the next decade.”
Time Stamp References:
1:20 – Silver and possible target.
5:30 – Angles of entry/exit.
7:40 – Gold is the roadmap.
10:27 – Gold in other currencies.
12:40 – Rates vs gold
17:15 – Silver and taking profits.
20:00 – Identifying tops.
21:45 – COT and extra data on silver.
25:10 – Defining contango.
29:20 – Sugar vs gold.
31:35 – SilJ analysis.
34:20 – Dow Vs. Silver
Talking Points From This Episode
- Comparing past bull runs to today.
- Targets for gold and silver.
- Comparing inflation-adjusted treasury rates to gold.
- Sugar as a leading inflation indicator.
- Expectations for the miners and the Dow.
Patrick Karim is a proprietary capital manager and chart trader since 2006. Patrick’s background in commerce, psychology, and an ongoing career in systems engineering has allowed him to achieve a systematic approach to evaluating trading scenarios.
His psychology background helps him understand the human factor, ex: overcoming stress, which is mostly responsible for maintaining a successful career.
Youtube channel: https://www.youtube.com/patrickkarim