NEW YORK ( TheGoldAndOilGuy.com) -- How to trade gold and other precious metals related investments is not that complex. But you must be willing to wait for price to provide low-risk entry points before getting involved.Precious metals are like any other investment in respect to trading and investing in them. There are times when you should be long, times to be in cash and times to be short (benefit from falling prices). Since 2011, when gold and silver started another major bull market correction, the best position has been to move to cash or sell/write options against your positions to protect your investment until the next trend resumes. If you take a look at the chart below of gold you will notice that in 2008 we had a similar breakdown in price which purged the market of investors who where long gold. And if you compare the last two breakdowns they look very much the same. If price holds true then much higher prices are likely to unfold at the end of 2013. The key here is for the price to move and hold above the major resistance line. If it can do that then we are looking at a possible breakout to $2,600-$3,500 gold. With that being said, gold and silver may just be starting a bear market. Depending what the price of gold does when my resistance level is touched, my outlook may change from bullish to bearish. Also, with last week's economic numbers getting better in the U.S., I do have concerns that gold may be starting a bear market, but we will not know for several more months yet.