As expected gold and silver prices broke through support levels last week – and now we have gold and silver bullion on sale. I believe that the coming months will offer an excellent opportunity to add to precious metals holdings. Probably the best opportunity we’ll see in the current leg of this bull market.
It was pretty evident that something like this was going to happen. The rally we saw a while back definitely had the characteristics of a temporary move. More about my view at the time here.
The graphs below show the most recent spot price performance for both gold…
Prices are trending downwards and have been for some time. Technical levels have not held their supports plus we have the general risk on attitude of the markets. It amuses me to see the discussion on the Fed tapering their stimulus program. For some reason actual implementation…or acting on these talks….never seems to materialise. There is no way for the Fed to stop he stimulus and unwind their huge positions without causing serious volatility in the markets. We are already seeing evidence of this today – which I will cover in a coming blog post.
So what’s in store for us next? I expect further price declines in gold and silver prices as I’ve said for some time.
How should you play the markets given a scenario of further price declines? Continue buying silver bullion and gold bullion all the way down to where we see a turnaround. Expect increased premiums and supply constraints along the way. That’s actually the premiere reason for why you won’t be able to fully exploit a market bottom….even if you should be so lucky to time it – which we all know is very difficult.
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