Silver and Gold Bottoming?

July 13, 2009

          Gold and silver are looking like they have found short term support above $905 and $12.45, respectively. After testing support for the past several days, both metals rallied strongly today, along with the broader stock markets. We'll need a one or two more trading days to confirm that the short term bottom is in, but I bought today and will likely complete my purchases tomorrow or Wednesday if it looks like the support will hold. Closes below $905 for gold and $12.45 for silver would probably send the metals down to support around $880 and $12.

          Economic data released this week will likely shape investor sentiment towards the metals. PPI and retail sales come out Tuesday. Wednesday we'll see consumer inflation (CPI) and FOMC minutes. A number of other economic data will be released this week as well, so it should be interesting.

          At this time, I still think it probable that there will be another precious metals sell off in the late summer, which would be the best buying opportunity for long-term buy and hold investors. I'm purchasing now with an eye towards trading a smaller short term rally, so keep that in mind if you are thinking of buying.

Best wishes on your future and investing and God Bless,

Timothy Silvers

 

Disclaimer: This article represents the opinions and personal views of Timothy Silvers and is not intended to be investment advice. If you choose to use this analysis for your personal trading, Timothy Silvers assumes no liability for the direct or indirect losses you may incur due to using this article to make your investment decisions. You are totally and completely responsible for your own investments. At any given time, Timothy Silvers or his friends and relatives may have positions in silver related investments that may or may not follow the recommendations contained in this article. The information in this article may not be completely correct and accurate. Even though Timothy Silvers has done his best to review the content and accuracy of this article, he is in no way liable or responsible for any mistakes or omissions.