My long time readers know, our models have consistently called every major twist and turn in gold and silver for the last several years. Our most recent trades in gold have been on the short side.
On May 23, 2012, we bought to cover the last of the gold short positions at $1,538 in near-month futures (equivalent in gold ETF GLD at $149.51) and $1,559 in near month futures (equivalent in GLD at $151.49).
We also made the same recommendations in real time to subscribers of ZYX Short Sell Change Alert .
Recently, we have had no positions in silver futures or silver ETF SLV. The reason is that our models showed there was higher risk in silver than in gold. The goal of our models is to obtain maximum risk-adjusted returns from precious metals.
The chart shows calls of our models and our trades on gold. 
Now, for the first time in a long while, our models are neutral on gold.
The Qualitative Screen of the ZYX Change Method continues to show fair value of gold to be in the range of $1,250 to $1,400.
This screen is focused on the fundamentals of supply and demand of the physical metal. Since our focus is on risk adjusted returns, the models show the risk of an upside breakout is greater than the risk of a downside breakdown. Therefore the rating is neutral on gold.
The chart shows calls of our models and our trades on silver.
The Qualitative Screen of the ZYX Change Method continues to show fair value of silver in the range of $21 to $24….Read more at MarketWatch.
