The Bottom Is In For Gold and Silver Prices!Snippet from a subscription newsletter put out by a group of very conservative commodities analysts / traders / newsletter writer...rarely make such positive remarks so boldly...but when they o, they've almost always been right on the money...(can't seem to copy/paste graphs here anymore, sorry...anyone know the secret?...used to do it all the time, but not recently...some changes made?)...jt
.............................................................................................Gold Forecaster Weekly E-Mail Snippet
The Bottom Is In For Gold and Silver Prices!
By: Julian Phillips & Peter Spina, for the Gold & Silver Forecaster
- Market Alert for the short-term on the Gold & Silver markets
26th February 2010
On the 22nd December 2009 we sent you the following Alert:
With $1,215 showing a short-term top for gold and the subsequent drop to $1,094 so far, as gold tracks the €, we see that gold shares as well as the gold price may well jerk down further, to, at worst, $970, but hopefully not below $1,000. Silver will follow the same pattern. This should provide great buying opportunities for Subscribers!
Now we alert you to the expected ‘bottom’ at around $1,080 to $1,150. However, as we are right at this bottom now, we believe that we are very close to the time you should buy, if it is not NOW!
The fall in the gold price from $1,215 has been $-rally driven. With the Eurozone wallowing in debt on its South side the relationship with the $ and gold has broken down. Long-term large investors are sitting on the sidelines clearly waiting for the right entry point. This body of large institutional buyers is now found in Europe as well as the East. U.S. based gold Exchange Traded Funds should follow once the rise in the gold price has started, not before.
The $ rally is really the weakening € falling faster than a weakening U.S. $ not justified on fundamentals, which point to a steady, slow decay of the $ over the next years. The disasters facing Greece, then Spain and others is producing its own ‘credit crunch’ effect and leveraged gold investors globally are reducing their positions now. We expect heavy short-covering on the next gold price rise too.
We are now seeing the opportunity re-enter the market at close to the bottom. We emphasize that the upward trend has not changed and now we have been given a short-term signal that a rise is about to begin. We want to stress that subscribers use this mainly as an entry point.
This Alert is to put you on your toes ready for the next upward leg of the gold market as the gold price is about to turn.
Holders should be able and willing to hold gold and gold shares for the next year plus, thereafter, as gold turns and makes new highs.
We feel that soundly based gold “Junior” mining companies will benefit strongly on the rise (please see more on gold stocks below).
Large investors are more concerned at buying large tonnages of gold, rather than prices, so will assist in making markets look volatile and falling, or too high for buyers and so favor sellers.
They aim to foster market conditions that will make sellers sell. Now they are poised and ready with cash.