The PM buy is close ?

Gold Analysis (courtesy the Rhodes Report)

Rhodes says(last letter), and I tend agree, that soon the signals he identifies (see the link above) will lead to a substantial rise in the metals, AND following that rise it will be time to own the miners GDX and GDXJ and maybe some individual dividend paying miners, eg, NEM etc.

Another Independent analyst suggests that silver leads gold in major price rises. This a truism (in my history) and that means that Silver should also catch the breeze and sail up. Many of the silver miners are as cheap as I an recall recently.

Timing: This is a matter of technicals and fundamentals. I suspect the metals are oversold and may get another push down before Gold and Silver start their climb (technicals). Following that US Fiscal Cliff arrives in the fall and the fear of deflation will rise (given the new US taxes planned for 2013 and 2014 ad nausea) and the current economic problems of China and EU. (fundamentals)

But the gentlemen at the Fed will rise to the occasion and flood the market with money. The ECB will do likewise and BOJ and CBOC will likely follow suit. Inflation has likely been set free. Prudent traders should consider the metals, and above all the miners.

Best, Islander.

Edited by Islander, 08 July 2012 - 07:48 PM.

what time frames are you looking at Islander? I had thought we might have a pop into august before more down

The precious metals move can start anytime. the problem on timing is further correction in equities in general that could drag PM down with that move. Technically PM are ready to move. It could be a very large move. President's offer to extend Bush tax cuts yesterday may be encouraging to the markets. I consider the PM to be separately driven by monetary policy - money printing- really global policy in fighting the recession while trying to stay competitive for export sales. That will start competitive devaluations of currencies to make export competition feasible. This is often called the currency wars. In general it is devaluation of money making PM the store of value. Islander

Edited by Islander, 09 July 2012 - 08:14 AM.