Silver's 'buy signal' and why it is a good idea to hold commodities in recession, Goehring & Rozencwajg weighs in | Kitco News My Comment: Of course, with rates rapidly increasing and with China's debt bubble bursting and Europe's energy costs soaring, something big could break at any time which would propel gold higher. I have a buy order in on Condor at US$0.065.
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Right now, the silver market is very close to registering "a big buy signal," Goehring added. "Silver specs have now gone short, and they've been short for a couple of weeks now. And commercials are just about to go long. They're basically flat, and that's getting awfully close to a buy signal," he said.
However, the gold market still has a ways to go. "The commercials are still net short, and the speculators are still net long. So if we were to get a real flip in the gold psychology, that would be the bottom," Goehring said.
For gold, a potential bottom this year could be around $1,600 an ounce, which would be a 50% Fibonacci retracement. "And we're not that far away. That might be a natural stopping place on the downside," Goehring stated.