Buy and hope ? Remember, unlike businesses, farmland and investment real-estate, gold and silver are largely unproductive assets and the ongoing recovery in the economy is a major headwind for the metals. Make no mistake, despite what the gold bugs may tell you, the prices of gold and silver do not always go up. Thus, ‘buy and hope’ is not a prudent methodology.
Finally, when reviewing the price action in the mining stocks, we cannot help but think that the trend remains down and if anything, there is a real risk that prices may fall below the recent lows.