Precious Metals- So Much to Be Bullish About
This week, precious metals prices have sold off after some investors started to become more optimistic about the global economic outlook for 2013 because of the FOMC report. The overall thinking of these investors is that the need for safe-haven assets seems to have eased. After digging into who sold off gold and silver, it is interesting to note that it was mostly short-term traders; while long-terms investors have added to their positions at lower prices. There will be a huge bounce and continuation of the bull market because: There is no doubt that jewelers will start to stockpile and create demand at these lower prices The currency wars between nations to devalue their currency is rampant We believe there are major global economic issues and the safe haven status will return In summary, although we can understand the reason why long liquidation is taking place in some quarters, we can also see why others are likely to be keen buyers into this liquidation sell-off. Since the buyers who are absorbing the recent selling may well be long-term owners of gold and silver. Overall we are not for day trading or swing trading; we are advocates for accumulating silver and gold for the long term. This is value investing!
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