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Silver and gold end recent correction and way now open to very much higher prices

Posted on 07 January 2013 with 5 comments from readers

Last Friday likely marked the end of the recent correction in silver and gold prices and there is nothing except blue sky from here. That was the conclusion of chartists like Clive Maund reading the technical signals (click here) from the price charts over the weekend.

From a more fundamental perspective last week was something of a bear raid on precious metals by the Fed and its bullion banking friends. False rumours about a wind-up of the QE program quickly put the wind up the weaker holders of gold.

Manipulation, manipulation

The buyers were doubtless these same banks. This is actually what the great gold guru himself Jim Sinclair said would happen a month ago (click here). The bullion banks are repositioning their holdings ready for another leap in gold and silver prices, this time up and not down.

In a manipulated market this sort of thing happens all the time. However, the longer trend is still everyman’s friend.

Mr. Maund’s commentary correctly points out that abandoning QE would be like the captain of the Titantic spotting an iceberg and ordering the ship to sail straight into it. As ArabianMoney noted yesterday the global bond markets would immediately crash without QE.

Investing on the inevitable is generally a highly successful move. However, patience and perseverance are always needed to ride out the ups and downs of any financial market. Many fellow travellers drop out along the way. A few left last week and will bitterly regret it later.

$11,000 gold?

Eventually gold and silver will arrive at their ultimate destination of very much higher prices. James Turk hazards $11,000 an ounce as the top for gold (click here). Silver has its $1,000 an ounce pundits. Markets do always tend to overshoot on the upside.

So New Year nerves aside what Friday last week really represented was probably the cheapest buying opportunity of this year. Put the technical charts and fundamentals together and the message is crystal clear. Gold and silver prices are about to take-off.

Gold and silver stocks most likely also hit rock bottom at the same time last week. The gains from here should be pretty spectacular.

Posted on 07 January 2013 Categories: Gold & Silver, Investment Gurus

5 Comments posted by readers:

Comment by Ken - 07 January 2013

Isn’t this entry price still too high compare to what was stated in the previous newsletter

Comment by Jimmy H - 07 January 2013

It’s just more of the same ole same ole. I know gold and especially silver will eventually take off, so I just patiently wait. Maybe this will be the year it leaves the launchpad,or maybe it’s the year of the biggest crushing yet. We’ll just have to wait and see.

Comment by martin sheldon - 09 January 2013

We have heard many people quoting ,” thats it gold is about too sky rocket” there are many articles written too this nature, please can you stop speculating because you dont really know. Your hoping the prices will soar because your invested in it as am I. The real truth be known you are scaring would be invested bye making these claims and they are proved too be untrue. Just be patient and let us wait and see what happens, your really anoying.

Comment by Rob O’Regan - 16 January 2013

Tinkerbell believe that ‘wishing will make it so’, but she also knows that the US debt using fiat currency is bound to follow the other ( 20 or so ) currency faiilures in history.

Comment by John A - 22 January 2013

I can see by reading some of the comments how ‘emotions’ can start to chip away at the logic of investing in gold and silver and holding on to it. Just hang tough and be patient I say. Weak hands are your worst enemy. Hold on to what U got. Buy on dips. Don’t try to cash your check too quickly and just use your brain, research, beware if deliberate mainstream misinformation, invest on what you’ve learned, live below your means and wait patiently. Long live James Turk and Eric Sprott!

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