Precious metals investing

The above is Silver.  Silver broke up out of its 1st and 2nd hurdles this week. The 2nd is the lower falling trend line, shown.

It is a fair assumption it will close above this line tonight.  In other words, it will have a weekly close above Resistance.  This is important to the bullish case.

The target now for Silver is $26/26.5.  That equates to c $1500/1550 for Gold.  As recently as December Gold was sub $1200.

We bought, heavily, into Gold and Small Capitalisation Gold Mining shares in the Autumn of last year.

The leader (leading indicator) in the Precious Metals market – Small Cap Miners – has been moving like a rocket ship.  In just the last two weeks it has rocketed a massive 28% (in US$).

The technical indicators are very positive and confirming the trend is up.

The minimum target is $60/65 but I suspect it will be more like $90.

This year.

NB. In early 2011, the GDXJ Index peaked at $180.  Look where it is now, in comparison.

I hasten to say though we remain of the view, until something changes it, that precious metals are still in a long term bear market, which started in 2011.

We would have to see Silver rise above $28, with strength, before we would even contemplate that the long term trend has changed from down to up, for Gold and Silver and mining shares.


Nothing in these articles can be taken as financial advice.  Neither Jonathan Davis nor Jonathan Davis Wealth Management will be held responsible for action taken or not taken from reading these articles.

We recommend investors seek bespoke advice before acting.

© 2014 Copyright Jonathan Davis – All Rights Reserved

This entry was posted in Asset allocation, Investing, Retirement and tagged , , , , . Bookmark the permalink.

13 Responses to Precious metals investing

  1. Gary (?) says:

    Hi mate

    When do you think the intermediate top might be in then before the bear resumes? Same duration up as most recent leg down, circa three years?

    Total punt I know

  2. Anonymous says:

    Yeah fair point really, just surprising that you put out a forecast for the “long term” when as you say things are bound to change. I can barely cope with what’s going on in the present

  3. Anonymous says:

    Precious metals are in a bear market? I thought they were going to the moon

    Strong average rises due 2008 to 2018

    • God, you spend an awful lot of time scraping the barrel to find me wrong on something. of course you are anonymous. isn’t the internet lovely?

      Excuse me – they did go to the moon FFS!| Then we largely got out from mining shares in late 2010 (at the highs or within 10%) and Jan 13 before the final big leg down.

      Quote me again from 6 yrs ago and I’ll block you. I have no interest in commenting on comments I made years ago. Too many things can happen in the meanwhile entirely altering the landscape and you – mr clever f’g clogs – should know that.

Comments are closed.